VGSF - WU Vienna - LC

Roman Goncharenko, KU Leuven

Campus WU TC.3.06 12:00 - 13:00

Organizer WU Vienna

The Fin­ance Brown Bag Sem­inar is held by the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance (WU Vi­enna) and the Vi­enna Gradu­ate School of Fin­ance (VGSF). It serves as a present­a­tion plat­form for PhD stu­dents, fac­ulty mem­bers, and vis­it­ors. An over­view of BBS on the web­site of the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance.

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Ro­man Gon­char­enko, KU Leuven

When Green Meets Green

We in­vestig­ate whether and how the en­vir­on­mental con­scious­ness (green­ness for short) of firms and banks is re­flec­ted in the pri­cing of bank credit. Us­ing a large in­ter­na­tional sample of syn­dic­ated loans over the period 2011-2019, we find that firms' are indeed re­war­ded for be­ing green in the form of cheaper loans--however, only when bor­row­ing from a green con­sor­tium of lenders, and only after the rat­i­fic­a­tion of the Paris Agree­ment in 2015. Thus, we find that en­vir­on­mental at­ti­tudes mat­ter "when green meets green." We fur­ther con­struct a sim­ple styl­ized the­or­et­ical model to show that the green-meet­s-­green pat­tern emerges in equi­lib­rium as the res­ult of the third-de­gree price dis­crim­in­a­tion with regard to firms' green­ness.



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