Using a novel sample covering 3783 US public firms from 2007 to 2020, we examine how negative media coverage of firm-level environmental, social, and governance (ESG) practices affects a firm's debt choice. We find that firms with higher ESG reputation risk rely more on public bond than bank loan. The social and governance components, in particular, matter. Moreover, firms that receive more negative news coverage display a higher propensity to issue new bonds as opposed to securing new bank debt. Overall, our study presents empirical evidence on the relation between firm ESG reputation risk and debt financing.

中文翻译：

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坚定的 ESG 声誉风险和债务选择

我们使用涵盖 2007 年至 2020 年 3783 家美国上市公司的新样本，研究媒体对公司层面环境、社会和治理 (ESG) 实践的负面报道如何影响公司的债务选择。我们发现，ESG 声誉风险较高的公司更多地依赖公共债券而不是银行贷款。社会和治理部分尤其重要。此外，收到更多负面新闻报道的公司更倾向于发行新债券，而不是获得新的银行债务。总体而言，我们的研究提供了关于公司 ESG 声誉风险与债务融资之间关系的经验证据。