JEI Topics
Call for Articles and Papers: Environmental Innovations Re-energizing the Investment World
The increasing global focus on environmental investments raises concern about the relationship between a firm’s cost of capital and its corporate environmental (ESG) performance. However, there is little research on the topic. The previous literature on corporate finance has found that capital constraints play a role in companies’ investment decisions. This article contributes to the existing corporate finance literature by looking at the impact of the cost of corporate debt and the degree of leverage on corporate environmental performance (CEP).
Does a Higher Degree and Higher Cost of Leverage Worsen Corporate Environmental Performance?
The increasing global focus on environmental investments raises concern about the relationship between a firm’s cost of capital and its corporate environmental (ESG) performance. However, there is little research on the topic. The previous literature on corporate finance has found that capital constraints play a role in companies’ investment decisions. This article contributes to the existing corporate finance literature by looking at the impact of the cost of corporate debt and the degree of leverage on corporate environmental performance (CEP).
Quantitative Credit-Rating Models Including ESG Factors
For decades, financial analysts have used quantitative methods to assess credit qualities. A milestone in this field was the introduction of discriminant analysis by Altman (Altman 1968). With a few carefully selected, relevant, and material ratios, such models were able to assign credit
Green Bonds: The Time Is Now
Green bonds, once characterized as novelty investments, are now an integral part of institutional investors’ core fixed-income portfolios and represent the entire investment chain, ranging from corporate to municipal bonds and sovereign bonds.
Green Bonds: The Shape of Green Fixed-Income Investing to Come
Fixed-income securities that use their proceeds toward the financing of ESG-aligned projects have proven particularly attractive among investors. Their volume has been increasing exponentially since their inception by the European Investment Bank (EIB) in 2007 and following their expansion by the International Finance Corporation (IFC) in 2010.
For this special issue, we looked for articles that explore the extent to which sustainability-linked and ESG-aligned fixed-income securities can support the mainstreaming of responsible investment principles across the financial sector.
