Economics Webinar - ESG Integration under Asymmetric Information
3:00pm - 4:30pm
Online via Zoom
We present a model of ESG integration where borrowers can deviate from ESG promises ex-post. Borrowers are incentivized to pursue ESG projects only when lenders charge a high borrowing rate, which decreases the borrowers’ private benefit from reneging on their ESG claims. In the presence of adverse selection on borrowers’ genuine preferences for ESG, there is an equilibrium in which borrowers conduct ESG integration when ESG-friendly lenders bid first. Specifically, when ESG-friendly lenders take out non-ESG borrowers from the lending market, non-ESG lenders perceive the holdout borrowers to be ESG-friendly and demand a higher borrowing rate, which facilitates ESG integration.
活动形式
讲者/ 表演者:
Prof. Keeyoung Rhee
Pohang University of Science & Technology
语言
英文
适合对象
校友
教职员
研究生
主办单位
经济学系
联系方法
Julie Wong by email: ecseminar@ust.hk