An important puzzle in credit markets is why some firms use the services of financial advisors (FA) rather than undertake those tasks themselves. This paper examines, using theory and empirical evidence, whether the presence and the reputation of FA can act as a credible signal of project...

We investigate how corporate borrowers can manage ex post ESG-related risk and signal their commitment by approaching banks that adopt Equator Principles, which require them to monitor a project's environmental and social impacts. We examine the effects of using such "green banks'' on corporate...