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4. Interim Conclusion and Hypothesis Formation

  • 2025
  • OriginalPaper
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Abstract

This chapter delves into the complexities of measuring ESG performance and its implications for corporate credit risk, with a particular emphasis on the European bond market. It begins by addressing the challenges in defining and measuring ESG, highlighting the variability in corporate reporting and the limitations of ESG ratings. The chapter then explores the relationship between ESG performance and financial outcomes, noting the mixed results from existing research. A significant focus is placed on the European context, where the evidence is less clear compared to US studies. The chapter also examines the role of ESG ratings, their evolution, and their impact on credit risk assessment. It concludes by formulating hypotheses to test the influence of ESG performance on credit risk, considering the increasing demand for ESG investments. This chapter provides a detailed overview of the current state of research, offering valuable insights for professionals seeking to understand the interplay between ESG and credit risk in the European bond market.

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Title
Interim Conclusion and Hypothesis Formation
Author
Anna Gappmaier
Copyright Year
2025
DOI
https://doi.org/10.1007/978-3-658-49090-4_4
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