The E-axes Forum on Climate Change, Macroeconomics, and Finance

Mariassunta Giannetti

‘Glossy Green’ Banks: The Disconnect Between Environmental Disclosures and Lending Activities

Event description

Mariassunta Giannetti will present findings from her paper (with Martina Jasova, Maria Loumioti, and Caterina Mendicino) on ‘Glossy Green’ Banks: The Disconnect Between Environmental Disclosures and Lending Activities.
From the abstract:
Using a credit registry of European banks’ new loan issuance and content analysis on their environmental disclosures, we show that banks that portray themselves as environmentally conscious extend a higher volume of credit to borrowers in brown industries. These results are robust even after controlling for banks’ climate risk discussions and cannot be attributed to the financing of borrowers’ transition towards greener technologies. Examining the mechanisms behind strategic disclosure choices, we highlight that banks are hesitant to sever ties with existing brown borrowers, particularly when those borrowers exhibit financial underperformance. The discrepancy between environmental disclosures and lending activities is more pronounced when banks have low capital adequacy.
Moderator:

Anastasia Pappas
Founder, E-axes Forum

Mariassunta Giannetti

Mariassunta Giannetti is the Katarina Martinson Professor of Finance at the Stockholm School of Economics, a CEPR research fellow, and a research associate of the ECGI. She holds a Ph.D. in Economics from the University of California, Los Angeles and completed her B.A. and M.Sc. at Bocconi University (Italy). Professor Giannetti has broad research interests in corporate finance and financial intermediation. She has published highly-cited research in leading journals in Finance, Economics, and Management. She has been honored with a number of prestigious international awards including the Journal of Financial Intermediation best paper award, the ECB Lamfalussy Research Fellowship, and the ECB Duisenberg Fellowship. Professor Giannetti has been serving as associate editor of several journals, including the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, and many more. She is also an advisory board member of the Academic Female Finance Committee (AFFECT) of the American Finance Association and a frequent visitor and advisor to central banks around the world.

Paper and slides

'Glossy Green' Banks: The Disconnect Between Environmental Disclosures and Lending Activities (Paper)

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