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Contribution Details

Type Master's Thesis
Scope Discipline-based scholarship
Title Green Party Success and Domestic Bank Lending
Organization Unit
Authors
  • Yannick Germeau
Supervisors
  • Emanuela Benincasa
  • Steven Ongena
Language
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Date 2022
Abstract Text Does the success of green political parties in parliament influence banks' lending behaviour? This thesis collects data on the relative green party size in 21 countries, defined as the number of seats the green party has in parliament over the total number of available seats and matches it with both firm-level and loan-level data. The data is then analysed using a regression that is based on panel data and industry-size-location-time fixed effects to control for endogeneity. The results show a significant positive correlation between green party presence in parliament and domestic bank loans. This master thesis contributes to the literature that analyses the effects of introducing more stringent climate policies and how banks react when firms experience environmental concerns
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