Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7364366 | Journal of International Financial Markets, Institutions and Money | 2018 | 59 Pages |
Abstract
The Equator Principles (EP) provide banks with environmental guidelines for project finance. Distinguishing between banks from developed and developing countries, we analyse the effect of EP adoption on performance. Two sets of hypotheses for each sub-sample of banks are developed and tested using comparison analyses, event-study methodology and two-stage selection modelling. We find that in developed (developing) countries, EP adoption is associated with an increase (decrease) in funding activity and in the share of income from interest. These results indicate that EP adoption is a strategic decision for banks in developing countries, and a form of greenwashing in developed countries.
Keywords
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Maya Finger, Ilanit Gavious, Ronny Manos,