ESG ratings and sustainable finance
: a comprehensive analysis of cost of financing for European firms within the Stoxx Europe 100 index

  • Jorge André Araújo da Fonseca (Student)

Student thesis: Master's Thesis

Abstract

This dissertation investigates the relationship between Environmental, Social, and Governance (ESG) factors and the cost of debt for 92 companies listed on the STOXX All Europe 100 Index from 2018 to 2022. It addresses four key questions regarding the impact of overall ESG scores, environmental, social, and governance scores on borrowing costs. Despite negative coefficients indicating a potential inverse relationship, none were statistically significant (p > 0.05), suggesting that ESG performance may not consistently influence borrowing costs. Overall, while ESG considerations are important for sustainability, they may not significantly affect borrowing costs, warranting further research into the nuanced relationship between ESG and financial metrics.
Date of Award16 Jul 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJoão Pinto (Supervisor)

UN SDGs

This student thesis contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth
  2. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure

Keywords

  • ESG
  • Cost of debt
  • Sustainable finance
  • Financial performance
  • Environmental factors
  • Social factors
  • Governance factors
  • Financial metrics

Designation

  • Mestrado em Finanças

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