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dc.contributor.authorHoepner, Andreas
dc.contributor.authorOikonomou, Ioannis
dc.contributor.authorScholtens, Bert
dc.contributor.authorSchröder, Michael
dc.date.accessioned2016-10-07T10:30:09Z
dc.date.available2016-10-07T10:30:09Z
dc.date.issued2016-02
dc.identifier.citationHoepner , A , Oikonomou , I , Scholtens , B & Schröder , M 2016 , ' The effects of corporate and country sustainability characteristics on the cost of debt : an international investigation ' , Journal of Business Finance and Accounting , vol. 43 , no. 1-2 , pp. 158-190 . https://doi.org/10.1111/jbfa.12183en
dc.identifier.issn0306-686X
dc.identifier.otherPURE: 241630754
dc.identifier.otherPURE UUID: 28956b87-0164-49f8-aed0-712405fde787
dc.identifier.otherScopus: 84961238700
dc.identifier.otherWOS: 000373199300006
dc.identifier.otherORCID: /0000-0001-5774-5191/work/27162427
dc.identifier.urihttp://hdl.handle.net/10023/9620
dc.descriptionThis project was funded via a SEEK grant provided by the Centre for European Economic Research.en
dc.description.abstractWe investigate the relationship between corporate and country sustainability on the cost of bank loans. We look into 470 loan agreements signed between 2005 and 2012 with borrowers based in 28 different countries across the world and operating in all major industries. Our principal findings reveal that country sustainability, relating to both social and environmental frameworks, has a statistically and economically impactful effect on direct financing of economic activity. An increase of one unit in a country's sustainability score is associated with an average decrease in the cost of debt by 64 basis points. Our international analysis shows that the environmental dimension of a country's institutional framework is approximately twice as impactful as the social dimension, when it comes to determining the cost of corporate loans. On the other hand, we find no conclusive evidence that firm-level sustainability influences the interest rates charged to borrowing firms by banks. Our main findings survive a battery of robustness tests and additional analyses concerning subsamples, alternative sustainability metrics and the effects of financial crisis.
dc.format.extent33
dc.language.isoeng
dc.relation.ispartofJournal of Business Finance and Accountingen
dc.rightsPublished version is copyright © 2016 John Wiley & Sons Ltd. This work is made available online in accordance with publisher's policies. This is the author created, submitted version and may differ from the final published version. The final published version is available at https://doi.org/10.1111/jbfa.12183en
dc.subjectCorporate social responsibilityen
dc.subjectCSRen
dc.subjectCSPen
dc.subjectSustainabilityen
dc.subjectBankingen
dc.subjectFinancial contractsen
dc.subjectCultureen
dc.subjectLoansen
dc.subjectInternationalen
dc.subjectHG Financeen
dc.subjectHD28 Management. Industrial Managementen
dc.subjectHF5601 Accountingen
dc.subjectBusiness, Management and Accounting (miscellaneous)en
dc.subjectAccountingen
dc.subjectFinanceen
dc.subject.lccHGen
dc.subject.lccHD28en
dc.subject.lccHF5601en
dc.titleThe effects of corporate and country sustainability characteristics on the cost of debt : an international investigationen
dc.typeJournal articleen
dc.description.versionPreprinten
dc.contributor.institutionUniversity of St Andrews.School of Managementen
dc.contributor.institutionUniversity of St Andrews.Centre for Responsible Banking and Financeen
dc.identifier.doihttps://doi.org/10.1111/jbfa.12183
dc.description.statusPeer revieweden


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