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Dealing with Carbon Risk and the Cost of Debt: Evidence from the European Market.
- Source :
- International Journal of Financial Studies; Dec2020, Vol. 8 Issue 4, p61, 1p
- Publication Year :
- 2020
-
Abstract
- The ever-increasing attention towards climate change has led to investigate the economic and financial impact of environmental risk. In this scenario, we aimed at investigating the relationship between a specific component of environmental risk, namely the so-called carbon risk, and the cost of debt. This research is motivated by the fact that few studies have focused on the aforementioned relationship. We fill this gap by using a sample of companies listed on the Eurostoxx 600 Index. Our results evidence a positive relationship between carbon risk and cost of debt, providing a relevant contribution to the scarce existing literature on this topic. [ABSTRACT FROM AUTHOR]
- Subjects :
- CAPITAL costs
ENVIRONMENTAL risk
CARBON
ECONOMIC impact
CLIMATE change
Subjects
Details
- Language :
- English
- ISSN :
- 22277072
- Volume :
- 8
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- International Journal of Financial Studies
- Publication Type :
- Academic Journal
- Accession number :
- 147794810
- Full Text :
- https://doi.org/10.3390/ijfs8040061