【Micro/Macro Seminar】Capital Structure and ESG Integration
2025/04/15
研討會日期 : 2025-04-15
時間 : 14:30
主講人 : Professor Keeyoung Rhee
地點 : Conference Room B110
主持人 : Professor Gunhaeng Lee
演講者簡介 : Professor Keeyoung Rhee received his Ph.D. in Economics from Columbia University in 2015. He is currently an Associate Professor at Sungkyunkwan University. His research interests are Financial Economics, Applied Microeconomic Theory, and Political Economy.
演講摘要 : We analyze how borrowers' capital structure affects their incentives to integrate ESG. Borrowers may make socially valuable but financially underperforming investments to reduce expected payments to outside investors. These financial gains increase as the expected payoffs of securities issued for borrowers' investments sensitively change with financial profitability. ESG-focused investors may accept financial losses to fund ESG investments, particularly when borrowers have relatively weak social preferences. However, low capital costs can shift borrowers' focus back to financial profits, although investors hold strongly sensitive securities to ensure ESG integration. This incentive misalignment is mitigated when all competing investors bid with equities.
