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Costs of bank loans and industrial robot adoption: Cross-country evidence

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  • Lee, Chien-Chiang
  • Wang, Chih-Wei
  • Wei, Yu-Chi
  • Lin, Weizheng
  • Le, Ai Ngoc Nhan

Abstract

This study investigates the relationship between the deployment of industrial robots (IR) and firms' costs of bank loans in the global manufacturing industry. Our findings suggest that adopting IR directly increases firms' loan spreads. After alleviating the endogenous issues by conducting several statistical approaches, the results remain robust and unchanged. These increased effects are more pronounced in BRICS countries or during the crisis periods. Moreover, IR utilization contributes to heightened firms' financing costs through climate risk and energy usage channels. The aggravating effect of IR on firms' borrowing costs through climate risk persists under high R&D intensity or rapid GDP growth conditions. These findings highlight the importance of environmental risk premiums, suggesting that firms can lower loan spreads and improve their creditworthiness by adopting more sustainable practices.

Suggested Citation

  • Lee, Chien-Chiang & Wang, Chih-Wei & Wei, Yu-Chi & Lin, Weizheng & Le, Ai Ngoc Nhan, 2026. "Costs of bank loans and industrial robot adoption: Cross-country evidence," Pacific-Basin Finance Journal, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:pacfin:v:98:y:2026:i:c:s0927538x26000843
    DOI: 10.1016/j.pacfin.2026.103138
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