Do sustainable companies receive more debt? : the role of sustainability profiles and sustainability-related debt instruments

Meyer, Julia; Affolter, Beat

doi:10.2139/ssrn.4545549

Publication type:	Working paper – expertise – study
Title:	Do sustainable companies receive more debt? : the role of sustainability profiles and sustainability-related debt instruments
Authors:	Meyer, Julia Affolter, Beat
et. al:	No
DOI:	10.2139/ssrn.4545549
Extent:	34
Issue Date:	20-Aug-2023
Publisher / Ed. Institution:	SSRN
Language:	English
Subjects:	Sustainability assessment; Sustainable financing; ESG; SDG
Subject (DDC):	332: Financial economics
Abstract:	This paper develops a novel approach for classifying companies according to three different sustainability focus possibilities -- avoidance of financial and sustainability risks, contributions towards the UN Sustainable Development Goals (SDGs), and commitment towards transformation. We examine the relationship between these profiles and corporate financing. First, we link the three sustainability profiles to the probability that a company issues a sustainability-specific debt financing instrument and show that, against our predictions, better sustainability performers in all dimensions are more likely to hold such an instrument. Second, we provide evidence for a general increase in book leverage for companies avoiding sustainability risks, as well as companies in transition, but not companies providing specific solutions toward the achievement of the SDGs. Furthermore, this increase in leverage is not driven by sustainability-related debt instruments.
URI:	https://digitalcollection.zhaw.ch/handle/11475/29779
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute for Financial Management (IFI)
Appears in collections:	Publikationen School of Management and Law

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Meyer, J., & Affolter, B. (2023). Do sustainable companies receive more debt? : the role of sustainability profiles and sustainability-related debt instruments. SSRN. https://doi.org/10.2139/ssrn.4545549

Meyer, J. and Affolter, B. (2023) Do sustainable companies receive more debt? : the role of sustainability profiles and sustainability-related debt instruments. SSRN. Available at: https://doi.org/10.2139/ssrn.4545549.

J. Meyer and B. Affolter, “Do sustainable companies receive more debt? : the role of sustainability profiles and sustainability-related debt instruments,” SSRN, Aug. 2023. doi: 10.2139/ssrn.4545549.

MEYER, Julia und Beat AFFOLTER, 2023. Do sustainable companies receive more debt? : the role of sustainability profiles and sustainability-related debt instruments. SSRN

Meyer, Julia, and Beat Affolter. 2023. “Do Sustainable Companies Receive More Debt? : The Role of Sustainability Profiles and Sustainability-Related Debt Instruments.” SSRN. https://doi.org/10.2139/ssrn.4545549.

Meyer, Julia, and Beat Affolter. Do Sustainable Companies Receive More Debt? : The Role of Sustainability Profiles and Sustainability-Related Debt Instruments. SSRN, 20 Aug. 2023, https://doi.org/10.2139/ssrn.4545549.