The effects of corporate and country sustainability characteristics on the cost of debt: an international investigation

We investigate the relationship between corporate and country sustainability on the cost of bank loans. We look into 470 loan agreements signed between 2005 and 2012 with borrowers based in 28 different countries across the world and operating in all major industries. Our principal findings reveal that country sustainability, relating to both social and environmental frameworks, has a statistically and economically impactful effect on direct financing of economic activity. An increase of one unit in a country's sustainability score is associated with an average decrease in the cost of debt by 64 basis points. Our international analysis shows that the environmental dimension of a country's institutional framework is approximately twice as impactful as the social dimension, when it comes to determining the cost of corporate loans. On the other hand, we find no conclusive evidence that firm-level sustainability influences the interest rates charged to borrowing firms by banks. Our main findings survive a battery of robustness tests and additional analyses concerning subsamples, alternative sustainability metrics and the effects of financial crisis.

Monuments should not be trusted exhibition

Monuments Should Not Be Trusted brings together over 30 leading artists and groups from the “golden years” of the Socialist Federal Republic of Yugoslavia - the period between the early 1960s and the mid 1980s. Over 100 artworks and artefacts illuminate the key contradictions of this single party state – built after WWII on socialist principles, yet immersed in “utopian consumerism.” This is the first time in the UK that the art of this period, which has attracted increasing attention, has been shown in the context of the social, economic and political conditions that gave rise to it. It draws on new and innovative research on this period, and features many of its most celebrated artists. The exhibition begins with the rise of consumerism, midway through President Josip Broz Tito’s 37 year presidency, and ends a few years after his death in 1980. As well as artists’ works in moving image, collage, photography, sculpture and painting, the exhibition encompasses music, TV clips and fascinating artefacts, such as gifts made by workers for President Tito’s birthday, and relay batons which were carried across the country and ceremonially presented to him.