Investor perception of ESG-linked credit risk during the COVID-19 pandemic for U.S. and European firms
| Title: | Investor perception of ESG-linked credit risk during the COVID-19 pandemic for U.S. and European firms |
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| Format: | Journal Article |
| Publication Date: | December 2025 |
| Published In: | Finance Research Letters |
| Publisher | Elsevier BV |
| Description: | This article investigates whether investor perception of credit risk for companies financing ESG activities changed during the COVID-19 pandemic (2020–2023). Using the data on major U.S. and European companies from 2015 to 2023, we find that there is no relation between the ESG score and the credit risk before 2020. Nevertheless, an increase in the ESG score leads, on average, to an increase of the credit risk for U.S. and European companies in 2022 and 2023, with a stronger effect for U.S. companies. |
| Ivan Allen College Contributors: | |
| External Contributors: | K. Romanyuk |
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