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1. Introduction

  • 2025
  • OriginalPaper
  • Chapter
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Abstract

This chapter delves into the growing significance of Environmental, Social, and Governance (ESG) factors in the European debt capital market. It investigates whether ESG performance is integrated into the assessment of credit risk, focusing on bond ratings and risk premiums. The study explores the risk-minimizing or risk-maximizing effects of ESG investments and examines the impact of individual ESG dimensions. Additionally, it considers investor demand for ESG as a moderating factor. The chapter provides a comprehensive review of existing literature, develops hypotheses based on empirical findings, and presents a methodology for empirical analysis. The results aim to contribute to the understanding of ESG's role in credit risk assessment, offering insights for bond issuers, investors, and regulators.

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Title
Introduction
Author
Anna Gappmaier
Copyright Year
2025
DOI
https://doi.org/10.1007/978-3-658-49090-4_1
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