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Corporate green revenue and syndicated loan pricing

Jiali Yan & Junyang Yin

Journal of Corporate Finance2026https://doi.org/10.1016/j.jcorpfin.2026.102967article
AJG 4ABDC A*
Weight
0.50

Abstract

How do banks contribute to the green economy? Using a unique dataset detailing firms' revenue exposure to green business activities, we present new evidence that firms generating revenue from green products and services are associated with lower syndicated loan spreads. We find that the green revenue effects on loan spreads are attributable to firms' prospects tied to climate change-related opportunities and banks' environmental orientation. Foreign banks subject to mandatory environmental, social, and governance (ESG) disclosure regulations reduce the loan spreads to green revenue firms. We also find suggestive evidence that firms with green revenue tend to file more green patents following loan origination. While banks typically perceive green innovation as riskier and demand higher loan spreads, this effect is offset if a firm also generates green revenue. Collectively, our results highlight the pivotal role that banks play in channeling financial resources toward green business practices.

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https://doi.org/https://doi.org/10.1016/j.jcorpfin.2026.102967

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@article{jiali2026,
  title        = {{Corporate green revenue and syndicated loan pricing}},
  author       = {Jiali Yan & Junyang Yin},
  journal      = {Journal of Corporate Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.jcorpfin.2026.102967},
}

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Corporate green revenue and syndicated loan pricing

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.