Do TCFD supporters obtain better debt financing terms? A global study on how company bond yields are affected by the decision to support the TCFD.

Abstract: This thesis analyzes the impact of companies supporting the Task Force on Climate-related Financial Disclosures (TCFD), more specifically, the impact on their bond yields. As prior literature suggests that higher quality disclosures decrease companies' cost of capital and the TCFD aims to help companies provide relevant climate-related disclosures to the financial market, this thesis aims to test if firms supporting the TCFD will obtain similar financial benefits. Moreover, supporting firms can choose whether to only support or to disclose in accordance with the TCFD recommendations. Consequently, a distinction was made between these firms, resulting in two data samples. Using a linear regression test controlling for fixed effects, this thesis cannot find support to the claim that firms that sign the TCFD supporting agreement receive better debt financing terms, regardless of whether they disclose according to the guidelines or not.