Posted in: Sustainable Banking
ECCE Webinar by Stefanie Kleimeier and Michael Viehs: Carbon Disclosure and the Cost of Debt
In this webinar, ECCE researchers Stefanie Kleimeier (Maastricht University) and Michael Viehs (University of Oxford) will present their latest research on the effect of CO2 emission disclosure on corporations' costs of debt. Using a unique and comprehensive database on carbon emissions from CDP (formerly 'The Carbon Disclosure Project'), they study whether companies which voluntarily participate in the CDP disclusure framework enjoy more favorable lending conditions - in the form of lower spreads on their bank loans - than their non-participating counterparts. Their empirical results reveal a significant and negative relation between disclosing CO2 emission levels and the cost of bank loans. Regarding absolute emission levels, they find that firms disclosing relatively more CO2 emissions pay higher spreads on their bank loans. In this webinar, the authors will also discuss the important implications for corporate borrowers, lenders, and financial markets that arise out of their research.
Date: Wednesday, 11 March 2015
Time: 4:00 - 5:00 pm CET