Business Commons^™

Essays On Corporate Debt Features, Capital Structure, And Cash Policies, Xiaoyu Zhu

Dissertations, Theses, and Capstone Projects

Chapter 1: This chapter examines variations in corporate debt features with respect to changes in macroeconomic and microeconomic conditions. The features seen in corporate debt issues have evolved substantially over the past four decades in response to changes in the corporate financing landscape. In particular, this chapter studies the evolution of active debt provisions such as fixed-price calls, make-whole calls, and callable conversion features in corporate bond contracts. By integrating corporate bond data from the Mergent Fixed Income Securities Database (FISD) and Securities Data Company (SDC), This chapter reveals new temporal and cross-sectional patterns in active debt provisions.

Chapter 2: …

Essays On Corporate Sustainability, Aditya Malateesh Kashikar

Dissertations, Theses, and Capstone Projects

The dissertation provides an extensive literature review of topics in Corporate Sustainability. It further examines two key topics: ESG Pay and ESG Investing. For ESG Pay, I examine Bloomberg’s ESG linked pay measure using the largest panel (to date). I confirm several important results from the nascent literature on ESG Pay. Firstly, I find that Country and Industry play a major role in determining ESG Pay adoption. Secondly, among firm characteristics, Big and Value firms tend to have a greater probability of adopting ESG Pay. Thirdly, higher ESG scores increase the chance of ESG Pay adoption in the subsequent year. …

Pricing Climate Change Risk In Corporate Bonds, Elsa Allman

Publications and Research

This paper examines whether corporate bondholders price climate change risk. I find that firms exposed to higher sea level rise (SLR) across U.S. branch locations pay a premium when issuing bonds. Specifically, a one standard deviation increase in a firm’s SLR exposure is associated with a 2% increase of average yield spreads equivalent to 4 basis points. This effect is more pronounced for firms in industries vulnerable to extreme weather conditions, which are less spatially diversified, and issuing bonds with maturities ranging from 5 to 10 years. In addition, I find no evidence that credit rating agencies account for SLR …