Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238445 
Year of Publication: 
2020
Series/Report no.: 
ADBI Working Paper Series No. 1088
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
This paper aims to examine the effect of Environmental, Social and Governance (ESG) performance on sovereign funding costs, with a focus on emerging countries, especially in Asia. We find that better ESG performance is associated with lower default risk, and therefore lower funding costs. We also discover that countries with better ESG performance tend to have higher credit ratings, an important benchmark of sovereign funding costs. Regarding the effects of each component of ESG, we note that the social factor is significant among Asian countries, while governance is significant among Organisation for Economic Co-operation and Development countries.
Subjects: 
ESG performance
sovereign funding cost
credit rating
JEL: 
G11
F34
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.