Green Bond and shareholders' wealth: a  multi-country event study

Roslen, Siti Nurhidayah Mohd; Lee, Sin Yee; Ibrahim, Salizatul Aizah Binti

doi:10.1504/ijgsb.2017.084701

Cited by 26 publications

(13 citation statements)

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“…The day after the event should be more important for the market. However, our results are consistent with other studies (Roslen et al, 2017;Flammer, 2018), who also found significant returns in two-day estimation window (-1; 0). We analyzed the CARs day-by-day (Fig.…”

Section: Resultssupporting

confidence: 93%

Does Green Bonds Placement Create Value For Firms?

et al. 2019

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Section: Resultssupporting

confidence: 93%

Does Green Bonds Placement Create Value For Firms?

et al. 2019

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“…The same line of reasoning can be applied to this paper's specific topic -the market's reaction to the issuance of sustainability bonds. Many studies show that investors have a positive response to news about the issuance of green bonds (Wang et al, 2020;Tang & Zhang, 2020;Roslen et al, 2017;Baulkaran, 2019). However, Lebelle et al (2020) document a negative market reaction when announcing the issuance of green bonds, especially for first-time transactions and for those performed in developed markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainability Bonds. An International Event Study

Mocanu

Constantin

Cernat-Gruici

2021

Journal of Business Economics and Management

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Sustainability bonds enable capital-raising and investment for those projects that have both a positive impact on the environment and a positive social outcome. This study examines the stock market reaction to the announcement of sustainability bonds issuance. The present research is designed as follows: first, an event study that examines the market reaction and second, a highlight of drivers influencing this market reaction via a linear regression with cluster-robust standard errors. Overall, small and negative sample-wide reactions to sustainability bond issue announcements were found. Additionally, the study finds significant negative abnormal returns before the publication in June 2018 of The Sustainability Bond Guidelines by the International Capital Market Association. Specifically, the size of the bond issue, whether the bond is callable or not, the announcement of the issue as a single event in a day, the company’s Return on Assets, the firm’s social disclosure score, and the issuance of the bond prior or after June 2018 are statistically significant factors that influence the stock returns of issuers.

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“…In terms of issuers, these can include emerging and developing countries or oil-dependent economies, provinces or states as well as municipalities that are based in high-risk regions (like flood zones or coastal regions) and have carbon-intensive business models that are resource-based like those of fossil fuel companies. Such social actors might start looking to issue green bonds or even transition-linked bonds [37] in order to cope with future climate risks [6,9,[38][39][40]. In terms of investors that face the most mimetic pressure, it can include those that have an asset-liability mismatch, such as those seen in pension funds having long-term fiduciary duties, as well as those that have high risk of stranded assets, especially due to exposure to carbon-intensive portfolios [41].…”

Section: Types Of Institutional Isomorphismsmentioning

confidence: 99%

“…Green Bond Literature: [6,15,16,27,36,38,40,41] In the green bond market, imitation can mean undertaking innovative activities or initiatives by primary social actors (who are most likely newcomers in this market) to reduce future uncertainties. However, as mentioned by Gupta et al [22] and presented in Figure 1 a few points need to be kept in mind when applying ACW-certain dimensions and criteria can be reinforcing as well as create tensions (e.g., between strong leadership and high variety), some criteria can make others less relevant (e.g., sufficient entrepreneurial may not require visionary leadership), dimensions and criteria are not independent of each other (e.g., resources and fair governance can have broad impacts) or of their contexts (e.g., what is applicable for green bonds in one country context, might not work in another country due to varying institutional dynamics) and lastly, even if financial markets showcase adaptive capacity, it does not mean that it will go into a greener direction (p. 465).…”

Section: Mimetic Pressurementioning

confidence: 99%

An Institutional Pressure and Adaptive Capacity Framework for Green Bonds: Insights from India’s Emerging Green Bond Market

Saravade

Weber

2020

World

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Although climate finance tools like green bonds have been gaining popularity in academia, the research has been limited to examining the financial viability and performance of this market. We explore a different research avenue related to institutional dynamics that are driving this market at the country level and shaping its adaptive capacity to climate change. Our paper introduces a new conceptual framework by linking institutional isomorphism with adaptive capacity dimensions in the green bond market. Using a mixed methods exploratory approach, we apply our institutional pressure-adaptive capacity framework to India’s green bond market. Our results show that different social actors, ranging from formal institutions like regulators and investors to informal ones like advocacy groups, can play a key role in shaping the legitimacy of this market. By highlighting ‘invisible’ social norms such as awareness about climate finance, changing regulatory priorities and the institutional strength of social actors, we contribute to the literature on this topic. We also introduce the concept of a high priority social actor and conclude that varying degrees of institutional pressure from such actors will ultimately decide the growth and legitimacy of this integral climate finance market at the country level as well as influence its adaptive capacity response to climate change.

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Green Bond and shareholders' wealth: a multi-country event study

Cited by 26 publications

References 0 publications

Does Green Bonds Placement Create Value For Firms?

Does Green Bonds Placement Create Value For Firms?

Sustainability Bonds. An International Event Study

An Institutional Pressure and Adaptive Capacity Framework for Green Bonds: Insights from India’s Emerging Green Bond Market

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