Essays in corporate finance
OA Version
Citation
Abstract
This dissertation consists of three papers on corporate finance. Essay 1 finds that firms using sustainability-linked loans (SLLs) experience more credit rating upgrades and higher post-borrowing equity returns than similar firms using conventional loans, largely driven by reduced financing costs; a simple choice model rationalizes these patterns. Essay 2 develops a market-based rollover risk measure from bond transactions and finds that higher rollover risk suppresses M&A activity, shifts acquirers toward equity financing, and attenuates positive market reactions to cash deals; a dynamic model links these results to maturity overhang and precautionary savings. Essay 3 models firms’ trade-off between ESG-related maintenance costs and investor demand, implying ESG ratings can raise or lower the cost of equity depending on leverage, maintenance costs, and ESG demand; U.S. data from 2002–2022 support heterogeneous effects on the cost of equity and equity issuance.
Description
2026