Trust, social capital, and the bond market benefits of ESG performance

• 成果类型: Article
• 署名作者: Amiraslani, Hami; Lins, Karl V.; Servaes, Henri; Tamayo, Ane
• 署名单位: INSEAD Business School; Utah System of Higher Education; University of Utah; Centre for Economic Policy Research - UK; University of London; London Business School; University of London; London School Economics & Political Science; Centre for Economic Policy Research - UK
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-021-09646-0
• 发表日期: 2023
• 页码: 421-462
• 关键词: CORPORATE YIELD SPREADS; Debt maturity; institutional investors; GROWTH OPPORTUNITIES; liquidity risk; governance; firm; RESPONSIBILITY; AGENCY; matter

摘要

We investigate whether a firm's social capital and the trust that it engenders are viewed favorably by bondholders. Using firms' environmental and social (E&S) performance to proxy for social capital, we find no relation between social capital and bond spreads over the period 2006-2019. However, during the 2008-2009 financial crisis, which represents a shock to trust and default risk, high-social-capital firms benefited from lower bond spreads. These effects are stronger for firms with higher expected agency costs of debt and firms whose E&S efforts are more salient. During the crisis, high-social-capital firms were also able to raise more debt, at lower spreads, and for longer maturities. We find no evidence that the governance element of ESG is related to bond spreads. The gap between E&S performance of firms in the bottom and top E&S terciles has narrowed since the financial crisis, especially in the year prior to accessing the bond market.