The Influence of ESG Controversies on Financing Costs for European Companies: Does Culture Matter?
研究了2016至2023年欧洲STOXX 600指数公司中ESG争议与融资成本的关系，发现文化维度（如个人主义、不确定性规避）会调节这种影响，为监管者提供参考。
ABSTRACT This study examines the relationship between environmental, social, and governance (ESG) controversies and corporate financing costs, focusing on the moderating effect of national culture. It analyzes European companies listed on the STOXX 600 Index from 2016 to 2023. The findings indicate that lenders perceive ESG scandals unfavorably, with certain cultural dimensions moderating this effect. In countries characterized by individualism and masculine cultural traits, companies involved in ESG controversies, regarded as unethical, face higher equity costs. Conversely, countries with high uncertainty avoidance and power distance experience increased long‐term debt costs. We find that national culture does not significantly affect short‐term debt financing. These findings provide valuable insights for financial regulators seeking to mitigate the impact of ESG controversies and enhance corporate financing. The results are robust to alternative measures of ESG controversies, cultural dimensions, and endogeneity concerns.