IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v78y2025ics0275531925002636.html
   My bibliography  Save this article

Credit development and ESG performance: Cross-country evidence

Author

Listed:
  • Muchenje, Linda Tinofirei
  • Coupe, Tom
  • Dang, Huong Dieu

Abstract

This study quantifies the effect of a country’s credit development on the environmental, social, and governance (ESG) performance of non-financial firms. Examining 4664 listed firms across 40 countries over the period 2003–2021, we find that firms located in economies with a higher level of credit development exhibit better ESG performance. The association is stronger for financially constrained firms, bank finance-dependent firms, firms in emerging markets, and firms with severe information asymmetry. Furthermore, the relationship with corporate environmental performance, specifically emissions reduction, becomes more pronounced after the signing of the Paris Agreement and is stronger for firms in economies with climate laws/policies in place.

Suggested Citation

  • Muchenje, Linda Tinofirei & Coupe, Tom & Dang, Huong Dieu, 2025. "Credit development and ESG performance: Cross-country evidence," Research in International Business and Finance, Elsevier, vol. 78(C).
  • Handle: RePEc:eee:riibaf:v:78:y:2025:i:c:s0275531925002636
    DOI: 10.1016/j.ribaf.2025.103007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531925002636
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ribaf.2025.103007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:78:y:2025:i:c:s0275531925002636. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.