Abstract
The Equator Principles (EP) provide banks with environmental guidelines for project finance. Distinguishing between banks from developed and developing countries, we analyse the effect of EP adoption on performance. Two sets of hypotheses for each sub-sample of banks are developed and tested using comparison analyses, event-study methodology and two-stage selection modelling. We find that in developed (developing) countries, EP adoption is associated with an increase (decrease) in funding activity and in the share of income from interest. These results indicate that EP adoption is a strategic decision for banks in developing countries, and a form of greenwashing in developed countries.
| Original language | English |
|---|---|
| Pages (from-to) | 240-261 |
| Number of pages | 22 |
| Journal | Journal of International Financial Markets, Institutions and Money |
| Volume | 52 |
| DOIs | |
| State | Published - Jan 2018 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2017 Elsevier B.V.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 12 Responsible Consumption and Production
Keywords
- Corporate social responsibility
- Cross-country
- Environmental risk management
- Equator principles
- Financial institutions
- Financial performance
ASJC Scopus subject areas
- Finance
- Economics and Econometrics
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