Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence()

In this article, we examine whether stakeholder engagement impacts firms’ ability to raise debt during the COVID-19 pandemic. Using firm-level data from 51 countries, we find that firms with greater stakeholder engagement obtain higher debt financing during the COVID-19 pandemic. This effect is more...

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Autores principales: Srivastava, Jagriti, Sampath, Aravind, Gopalakrishnan, Balagopal
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9281449/
https://www.ncbi.nlm.nih.gov/pubmed/35859705
http://dx.doi.org/10.1016/j.frl.2022.103125
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author Srivastava, Jagriti
Sampath, Aravind
Gopalakrishnan, Balagopal
author_facet Srivastava, Jagriti
Sampath, Aravind
Gopalakrishnan, Balagopal
author_sort Srivastava, Jagriti
collection PubMed
description In this article, we examine whether stakeholder engagement impacts firms’ ability to raise debt during the COVID-19 pandemic. Using firm-level data from 51 countries, we find that firms with greater stakeholder engagement obtain higher debt financing during the COVID-19 pandemic. This effect is more pronounced for riskier firms, highlighting the importance of maintaining relationships with stakeholders. Moreover, we find that stakeholder engagement facilitates higher debt financing for less asset-intensive firms and firms in emerging economies. Our empirical analysis reinforces the role of firms’ stakeholder engagement in mitigating the adverse impact of economic shocks.
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spelling pubmed-92814492022-07-15 Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence() Srivastava, Jagriti Sampath, Aravind Gopalakrishnan, Balagopal Financ Res Lett Article In this article, we examine whether stakeholder engagement impacts firms’ ability to raise debt during the COVID-19 pandemic. Using firm-level data from 51 countries, we find that firms with greater stakeholder engagement obtain higher debt financing during the COVID-19 pandemic. This effect is more pronounced for riskier firms, highlighting the importance of maintaining relationships with stakeholders. Moreover, we find that stakeholder engagement facilitates higher debt financing for less asset-intensive firms and firms in emerging economies. Our empirical analysis reinforces the role of firms’ stakeholder engagement in mitigating the adverse impact of economic shocks. Elsevier Inc. 2022-10 2022-07-14 /pmc/articles/PMC9281449/ /pubmed/35859705 http://dx.doi.org/10.1016/j.frl.2022.103125 Text en © 2022 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Srivastava, Jagriti
Sampath, Aravind
Gopalakrishnan, Balagopal
Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence()
title Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence()
title_full Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence()
title_fullStr Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence()
title_full_unstemmed Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence()
title_short Is ESG the key to unlock debt financing during the COVID-19 pandemic? International evidence()
title_sort is esg the key to unlock debt financing during the covid-19 pandemic? international evidence()
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9281449/
https://www.ncbi.nlm.nih.gov/pubmed/35859705
http://dx.doi.org/10.1016/j.frl.2022.103125
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