TY - JOUR
T1 - EMPIRICAL STUDY ON THE EFFECT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS ON SOVEREIGN FUNDING COSTS
AU - Liu, Lian
AU - Nemoto, Naoko
N1 - Publisher Copyright:
© 2021 World Scientific Publishing Company.
PY - 2021
Y1 - 2021
N2 - Currently, a growing number of investors are taking environmental, social, and governance (ESG) factors into account when making investment decisions. Against this background, this paper aims to empirically examine the effect of ESG performance on sovereign funding costs with a focus on the Asia-pacific region. Based on system GMM and OLS estimation, we discover that better ESG performance is associated with lower funding costs. Regarding the effects of each component of ESG, we note that both environmental and governance factors are found significant among the Asia-pacific region, while governance factor is more pronounced among OECD countries.
AB - Currently, a growing number of investors are taking environmental, social, and governance (ESG) factors into account when making investment decisions. Against this background, this paper aims to empirically examine the effect of ESG performance on sovereign funding costs with a focus on the Asia-pacific region. Based on system GMM and OLS estimation, we discover that better ESG performance is associated with lower funding costs. Regarding the effects of each component of ESG, we note that both environmental and governance factors are found significant among the Asia-pacific region, while governance factor is more pronounced among OECD countries.
KW - Asia-pacific region
KW - ESG performance
KW - Sovereign funding costs
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U2 - 10.1142/S0217590821500466
DO - 10.1142/S0217590821500466
M3 - Article
AN - SCOPUS:85128405232
SN - 0217-5908
JO - Singapore Economic Review
JF - Singapore Economic Review
ER -