skip to Main Content

Ahead of the curve: Media, markets and investing in a better world

Through our analysis of the impact of media coverage, we not only demonstrate that news can lower or raise financing costs; the results also suggest that positive ESG-related company announcements further increase this effect. (…) In terms of CDS spreads, the interaction between the media and the markets shows that: Positive (negative) corporate news reports appear to result in a decrease (increase) in CDS spreads. This effect is even more pronounced for positive news items relating exclusively to ESG. This is particularly noteworthy, given that these are monthly data. More…

Hans-Jörg Naumer, director global capital markets and thematic research at AllianzGI, and B. Burcin Yurtoglu, chair of corporate finance at WHU Otto Beisheim School of Management

Source: IPE magazine

Back To Top