The Influence of ESG on Credit Risk - An Analysis of European Corporate Bonds

The increasing relevance of ESG (Environmental, Social, and Governance) in financial research and practice is driven by materiality, investor demand, and regulatory developments. Since ESG initiatives often entail (high) costs for companies, the question arises whether such investments pay off in terms of higher performance or lower risk. Previous research has primarily focused on the shareholder value perspective. More recent studies examine ESG from a risk perspective, mainly equity-based. However, studies exploring the relationship between ESG and credit risk remain scarce, especially in the European context. From a principal-agent theory perspective, it can be assumed that creditors evaluate ESG investments differently than owners. Creditors are primarily concerned with the servicing of their claims from the company s cash flow and generally favor less risky investments. The aim of this study is to provide a comprehensive overview of the existing empirical literature and to expand it through an original empirical investigation.

List of contents

Introduction.- ESG.- ESG and Credit Risk.- Interim Conclusion and Hypothesis Development.- Methodology of the Empirical Study on ESG and Credit Risk.- Results of the Empirical Study on ESG and Credit Risk.- Discussion of the Results.- Conclusion.

Product details

• Authors: Anna Gappmaier
• Publisher: Springer, Berlin
• Languages: English
• Product format: Paperback / Softback
• Release: 20.09.2025, delayed
• EAN: 9783658490898
• ISBN: 978-3-658-49089-8
• No. of pages: 241
• Illustrations: XXII, 241 p. 37 illus., 3 illus. in color.
• Subjects: Social sciences, law, business > Business > Business administration; Nachhaltigkeit, Governance, Sustainability, Management und Managementtechniken, Bond, Rating, Social, Risikobewertung, Corporate Finance, risk management, environmental, ESG, Credit risk, Bond Issuance, Risk Premium