Abstract

This study analyzes the effect of a company’s ESG performance on a company’s credit rating. In the background of the recent active discussion of non－financial information, it is receiving high attention in terms of resolving information asymmetry as well as interest and demand for non －financial information of stakeholders. This can be a driving force for enhancing corporate sustainability and maximizing corporate value in that a company can form efficient contracts with multiple stakeholders. However, the results of some related studies show mixed results depending on the type of data used. This is due to the deviation that occurs because each index related to each ESG adopts a different measurement method. Therefore, in this study, the ESG evaluation score of the Korea Corporate Governance Service, which is evaluated as the most effective proxy for performance in Korea, is used as a performance measure, and it is checked whether the credit rating agency, a representative external stakeholder of the company, recognizes it and reflects it in the credit evaluation. Analyze. As a result of the analysis, it was found that the higher the overall ESG rating and the rating of each individual factor, the higher the credit rating. This is a result that can be inferred that the credit rating agency judges that the performance of such non－financial information disclosure is lowering information asymmetry.

Keywords

• ESG performance
• non－financial information
• credit score
• and credit rating

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