The influence of ESG Ratings on the Credit Spread of Corporate Bonds
#esg practices enhance #riskmanagement, performance, stakeholder interest, and capital access. Strong ESG ratings reduce credit spread, benefiting firms' financials. ESG disclosure aligns with principal‑agent theory, lowering debt costs. Even modest ESG improvement cuts credit spread by 0.0035%, aiding companies' interest expenses. Transparent ESG commitment yields #european market rewards, aiding corporate bonds. Study aids policymakers, credit agencies, investors, and issuers in understanding ESG's bond impact.