Lending Rate and Carbon Emissions Nexus: Evidence from the United States of America

Broni, Mohammed Yaw; Hosen, Mosharrof; Mohammed, Hardi Nyagsi

doi:10.1016/j.resglo.2020.100031

Cited by 3 publications

(2 citation statements)

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“…Globally, many studies have examined the role of nancial institutions in addressing climate change risk mitigation and protecting the environment. For instance, study by Broni et al (2020) discussed the impact of lending rate on pollution and aims to determine whether the relationship between them is linear. The study analyzes annual data from the United States of America using standard econometric techniques, Dynamic OLS, and Markov Regime-Switching method.…”

Section: Literature Reviewmentioning

confidence: 99%

Carbon Footprints of Bank Loans and Economic Activities' Carbon Dioxide Emissions: Insights from Advanced Economics

Othman

2023

Preprint

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This paper examines the relationship between the intensity of Carbon Footprints of Bank Loans (CFBLs) and CO2 emissions emitted by advanced economies to assess if financial institutions' lending strategies contribute to addressing climate change risk. Using GMM estimator, the study analysed yearly panel data from 12 advanced economies encompassing 44 industries from 2005 to 2018. The findings of the study reveal that the intensity of CFBLs in advanced economies has inverse association with CO2 emissions from most economic activities (nearly 86.36%). This is an indication that banks' lending portfolios strategies in advanced economies are more sustainable, supporting low-carbon transitions and helping in climate change risk mitigation. Nonetheless, banks still need to be more disciplined about environmental protection measures, such as carbon disclosure requirements, carbon risk assessments, and incorporating environmental, social, and governance factors into their lending decisions and practices. These policies can increase transparency, accountability, and promote environmentally friendly lending practices, contributing to the global effort to address climate change.

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Section: Literature Reviewmentioning

confidence: 99%

Carbon Footprints of Bank Loans and Economic Activities' Carbon Dioxide Emissions: Insights from Advanced Economics

Othman

2023

Preprint

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“…The Pearson Correlation Matrix was used in this study to see if either of the two variables in the model have any correlation. Before running the regression model, most researchers display the Pearson correlation matrix (Broni, Hosen & Mohammed, 2020;Huynh & Su,2010;Padachi, 2006). The test of multicollinearity yielded the following results.…”

Section: Correlation Matrixmentioning

confidence: 99%

Leverage Structure Dynamics and Firm Value

Uddin

Khan

Hosen

et al. 2022

International Journal of Asian Business and Information Management

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The paper aims to examine the impact of leverage structure dynamics on firm value in Bangladesh. To this end, the panel techniques (GMM and PCSE) were used to control for serial correlation, heteroskedasticity, and cross-sectional difficulties in the panel data set. The paper found that leverage structure influences firm value. The result also supports the trade-off theory, which asserts that tax savings on interest expenses result in a lower total cost of capital and ultimately upturn firm value. Lastly, the paper highlights the significance of endogenous variables such as liquidity, profitability, tangibility, and tax rate on firm value in Bangladesh.

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