Abstract
ABSTRACT Using a Difference-in-Differences model, this paper investigates the relationship between firm-level ESG performance and trade credit receipt in OECD countries while accounting for a firm’s external finance dependence. The results indicate that firms with better environmental performance secure more trade credit, whereas social and governance practices do not have a statistically significant effect. This outcome is contingent on the firm’s reliance on external finance, underscoring the importance of ESG performance as one of the key factors for external lenders assessing firms through publicly available ESG scores.
Published Version
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