Customer Satisfaction and the Durability of Retail Banking Relationships

Presidential Address: Sustainable Finance and ESG Issues—ValueversusValues

“…For example, prior studies find relationships between a firm's environmental or social qualities and the pricing and risk of its debt (e.g., Chava (2014), Bae et al (2019), Kacperczyk and Peydro (2022), Seltzer, Starks, and Zhu (2022)). 27 For fixed income assets, whether a firm's negative externalities create more tail risk for investors in these assets is an open question, particularly since Bai, Bali, and Wen (2019) find that in the cross section, downside risk is the strongest predictor of future bond returns. Seltzer, Starks, and Zhu (2022) document that firms with poor environmental performance, or high carbon emissions, that are affected by heightened expected regulatory risk face downside risk effects.…”