The impact of environmental, social and corporate governance responsibility on the cost of short- and long-term debt

The aim of the paper is to examine the impact of environmental, social and corporate governance (ESG) responsibility on the short- and long-term cost of debt. Linear regression was applied to a unique dataset on CSR and cost of debt for 300 companies recognized in 2017 by Corporate Knights as the most sustainable companies in the world. The question about the link between CSR and cost of debt is important as there is still ongoing debate as to whether business should undertake activities in the field of CSR—managers and other stakeholders are still unsure of the outcomes. The findings show that the involvement in environmental issues decreases the cost of long-term debt whereas the involvement in social issues brings benefits to short- and long-term debt. Surprisingly the greater the involvement in corporate governance, the higher the cost of debt in all time horizons. Managers should expect a lower cost of debt from environmental and social activities mostly in the long run. Corporate governance expenditures may in turn be seen as a waste of company resources, cost of forgone opportunities, or—optionally—as an over-investment. The main novelty is the breakdown of CSR into three dimensions while examining various term structures of corporate debt.

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The New Wave of Currency Devaluations in Africa – Will the Devalued Birr Help the Coffee Exports?

Afrika Tanulmányok / Hungarian Journal of African Studies ◽

10.15170/at.2018.12.4.7 ◽

2019 ◽

Vol 12 (4.) ◽

pp. 101-118

Author(s):

Szabolcs Pasztor

Keyword(s):

Developing Countries ◽

Current Account Deficit ◽

Balance Of Payments ◽

New Wave ◽

Long Run ◽

Negative Effect ◽

Short And Long Term ◽

Coffee Sector ◽

The Impact

Despite the fact that currency devaluations are likely to have a negative effect on the economy in the long run, Ethiopia devalued its national currency, the birr (ETB), by 15 percent in 2017. They turned to this option in the hope of attracting more investments from abroad, decreasing import bills, improving the current account deficit and giving a boost to the exports of the coffee sector. A couple of months later, the impact seems to be promising because the export has been revived in some areas. However, it has to be stressed that the imported commodities may experience a price increase, there can be a widening balance of payments deficit and rising inflation. The paper aims to shed more light on the short- and long-term impacts of currency devaluations in the developing countries with a special emphasis on Ethiopia. Also, the recent Ethiopian measure is to be analyzed in greater detail highlighting the impacts on export earnings, import bills, the balance of payments, and on the overall competitiveness of the coffee sector.

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The Impact of Corporate Social Responsibility Investment on the Cost of Debt for Korean Firms: Focusing on the Corporate Bond Rating and Corporate Governance Level

The Korean Academic Association of Business Administration ◽

10.18032/kaaba.2016.29.7.1193 ◽

2016 ◽

Vol 29 (7) ◽

pp. 1193-1214

Author(s):

Dongsoon Kim ◽

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Yangho Kook ◽

Taegyu Jeong ◽

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...

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Corporate Bond ◽

Cost Of Debt ◽

Bond Rating ◽

Corporate Social ◽

The Cost ◽

The Impact

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The Interaction between American and European IRS Interest Rates

Scientific Annals of Economics and Business ◽

10.2478/saeb-2018-0006 ◽

2018 ◽

Vol 65 (1) ◽

pp. 81-96

Author(s):

Giovanni Verga ◽

Federica Trani ◽

Nicoleta Vasilcovschi

Keyword(s):

Interest Rates ◽

European Central Bank ◽

Quantitative Easing ◽

European Central ◽

Term Structures ◽

The Us ◽

Short And Long Term ◽

Internal And External Factors ◽

The Impact

Abstract European interest rates movements are affected by various internal and external factors. This paper studies the link between European and American short- and long-term interest rates. In particular, we consider the forward interest rates coming from euro and dollar IRS term structures. The econometric techniques employed are co-integration, Granger-causality, OLS and GMM. Our results indicate that European remote settlement forward and long-term interest rates are primarily driven by US rates and confirm that the causality acts mainly from the US to the Eurozone. This was true even during the recent periods of European Central Bank quantitative easing. These factors weaken the ECB’s ability to intervene. In fact, we found the impact of American monetary policy on long-term interest rates to be also relevant for European bonds.

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Corporate governance and volatility in the capital markets: Brazil case study

Corporate Ownership and Control ◽

10.22495/cocv7i1p4 ◽

2009 ◽

Vol 7 (1) ◽

pp. 43-54

Author(s):

Pablo Rogers ◽

José Roberto Securato

Keyword(s):

Corporate Governance ◽

Term Structure ◽

Institutional Environment ◽

Stock Exchange ◽

Good Practices ◽

Short And Long Term ◽

The Impact ◽

Positive Effect

n 2001, with the São Paulo Stock Exchange (Bovespa) creation of the “New Market and Governance Levels I and II”, Brazil became a unique country for corporate governance studies. From this date on it became possible to distinguish, in the same macroeconomic and institutional environment, companies that formally adopt good practices of corporate governance from those that don’t. This article objective, considering Brazil as a case study, was to assess the impact of higher levels of governance on the volatility term structure of the stocks. In methodological terms, it were developed two indexes of daily returns in the Brazilian stock market called IEPG-I and IEPG-S, and it was analyzed the volatility term structure with adjustments on the GARCH family models. The results were statistically surprisingly, highlighting: 1) higher levels of governance had positive effect in the reduction of the short and long term volatility; 2) the volatility of the companies with the worst practices of corporate governance seems to be more reactive to the market; 3) the persistence of the volatility of the companies with good practices is higher than that of the companies with worse practices; 4) the convergence speed of the volatility of the companies with good practices is lower than that of the companies with worse practices; and 5) the presence of information asymmetry or leverage effect in companies with worse practices of corporate governance and absence in companies with better practices of governance.

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The Impact of COVID-19 on Mental Health

International Journal of Biology and Biomedical Engineering ◽

10.46300/91011.2021.15.23 ◽

2021 ◽

Vol 15 ◽

pp. 202-211

Author(s):

Donart Koci ◽

Festina Morina ◽

Fatlinda Hoxhaj ◽

Antigona Ukëhaxhaj

Keyword(s):

Mental Health ◽

Economic Status ◽

Age Groups ◽

Financial Strain ◽

Self Confidence ◽

Long Run ◽

Short And Long Term ◽

The Impact ◽

The City

Infection with the new coronavirus (severe acute respiratory syndrome coronavirus 2, or SARS-CoV-2) causes coronavirus disease 2019 (COVID-19). The virus that causes COVID-19 spreads easily among humans and more continues to be detected over time as to how it spreads. The effect that this crisis will have on the mental health of the population, both in the short and long term, is unknown. In the acute phase, fears of possible exposure to infection, loss of employment, and financial strain are likely to increase psychological distress in the wider population. In the long run, grief and trauma are likely to appear as financial and social impacts become ingrained, the risk of depression and suicide may increase. Lack of hugs, handshakes, free movement and isolation have made it impossible for people to socialize and behave normally with each other. Anxiety, fear, insecurity and lack of self-confidence are some of the main problems that people faced during quarantine and that they may face after the release of the measures. The purpose of this paper is to prove how much the Pandemic and the situation with COVID-19 have affected the mental health of the population in the city of Prizren and Gjakova. Quantitative study method was used for the realization of this work. This paper is based on the data extracted from the questionnaire completed together with the citizens of the municipalities of Prizren and Gjakova. For the realization of this scientific research are involved 200 citizens. Age groups, gender, economic status, level of education and place of residence were analyzed. The study included people aged 20 to 50 years. The most included gender in the study is the female with 59% while the male gender with 41%. All results are presented in graphs worked with SPSS program.

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The influence of inflation targeting on the pass-through effect of the exchange rate

Voprosy Ekonomiki ◽

10.32609/0042-8736-2018-11-70-84 ◽

2018 ◽

pp. 70-84

Author(s):

Ph. S. Kartaev ◽

Yu. I. Yakimova

Keyword(s):

Developing Countries ◽

Monetary Policy ◽

Exchange Rate ◽

Inflation Targeting ◽

Policy Regime ◽

Short And Long Term ◽

The Exchange Rate ◽

Pass Through ◽

The Impact

The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.

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