ESG risk, political ideology and the syndicated lending relationship
研究ESG评分如何影响借款人与银行之间的匹配过程及银团贷款条款，发现高ESG评分的企业更容易从同样高ESG评分的银行获得贷款，尤其在政治自由州，且贷款条件更优惠。
Purpose This study examines how Environmental, Social and Governance (ESG) scores affect both the matching process between borrowers and lenders and the terms of syndicated loans. Design/methodology/approach The analysis concentrates on a comprehensive sample of syndicated loans to US firms. We estimate a set of linear models relating the borrower's ESG ratings to the bank's ESG ratings and to the loan conditions. Findings We find that firms with higher ESG scores are more likely to secure loans from banks that also have strong ESG ratings, especially in politically liberal states. Such firms also benefit from more favorable loan terms, including lower interest rates and a reduced number covenants. Originality/value This study highlights the dual role of ESG in influencing both borrower–lender matching and loan contracting outcomes. It also demonstrates that local political ideology amplifies the alignment between borrowers and lenders in terms of ESG, as well as the pricing of ESG ratings in loan contracting.