Investor strategies in the green bond market: The influence of liquidity risks, economic factors and clientele effects

Boutabba, Mohamed Amine; Rannou, Yves

doi:10.1016/j.irfa.2022.102071

Cited by 30 publications

(9 citation statements)

References 33 publications

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“…low-risk) investors buy short-term (resp. long-term) green bonds and hold them until maturity [27]. Chang et al find out that the liquidity and credit rating have greater differences in affecting the yield spreads of green corporate bonds with different issuance terms and the higher credit rating mains higher liquidity [28].…”

Section: E Pros Of the Chinese Bank-oriented Market Structurementioning

confidence: 99%

China’s Green Bond Market: Structural Characteristics, Formation Factors, and Development Suggestions—Based on the Comparison of the Chinese and the US Green Bond Markets Structure

Liao

et al. 2022

International Journal of Antennas and Propagation

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Since 2012, green bond markets have boomed worldwide, particularly in the European Union, the United States, and China. Under this background, the researchers use the methods of literature research, qualitative analysis, and descriptive research to compare the structure of Chinese and American green bond markets and analyze their differences from the perspective of historical evolution, issuance standards, and market operation characteristics. The researchers believe that China’s bank-oriented financial structure and America’s market-oriented financial structure are the main reasons for the difference between the two countries. The researchers then discuss the strengths and weaknesses of China’s green bond market and conclude that the advantages of China’s green bond market structure lie in low risk and close relationships between banks and enterprises, while the disadvantages lie in low financial efficiency and give relevant suggestions. This article makes up for the lack of cross-country comparison in the existing research on the green bond market and provides a qualitative research perspective. The suggestions put forward have specific policy significance for developing the green bond market in China and other developing countries.

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Section: E Pros Of the Chinese Bank-oriented Market Structurementioning

confidence: 99%

China’s Green Bond Market: Structural Characteristics, Formation Factors, and Development Suggestions—Based on the Comparison of the Chinese and the US Green Bond Markets Structure

Liao

et al. 2022

International Journal of Antennas and Propagation

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“…The NBC has also provided inputs to ASEAN sustainable finance taxonomy development, with a vision to gain larger opportunities, including the promotion of resource-efficient use and circular economy transition [116]. Zhang et al (2024) [137], by studying the risk of a stock market crash resulting from the issuance of green bonds, empirically showed that green bond issuance can significantly reduce the risks of a stock price crash. Likewise, the SERC is currently under a study of developing a green finance-related policy, "green bonds".…”

Section: Summary Discussion and Implicationsmentioning

confidence: 99%

“…Likewise, even though green bonds can attract investors' greater attention, especially investors who are looking for long-term and environmental benefits, the shortage of green bond issuance indicates low liquidity, reflecting wider bid-ask spreads and higher liquidity risks [136]. Similarly, Zhang et al (2024) [137] empirically showed that the issuance of green bonds can significantly reduce the risks of the stock price crash; however, liquidity certainly has a significant impact on the yield spreads of green bonds or climate bonds.…”

Section: Threats (T)mentioning

confidence: 99%

Cambodian Green Economy Transition: Background, Progress, and SWOT Analysis

Chan

2024

World

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A green economy is not a common economic practice. This leads the governments in many countries to focus on institutional arrangement and policy development. The institutional arrangement is one of the main significant factors, while green economy policies have to be well developed to support stakeholders and put less pressure on local communities. Hence, this research aims to understand green economic development in Cambodia by focusing on institutional arrangements and green economic development policies. Thus, this research’s priority was to evaluate their background and progress, and a comprehensive SWOT (strengths, weaknesses, opportunities, and threats) analysis was conducted based on their progress/transition. This research conducted background, progress, and SWOT analyses based on (i) the government’s documents, including the code, laws, royal decrees, sub-decrees, prakas, policies, strategic plans, roadmaps, and reports; (ii) development partners’ reports from reliable sources, such as UN agencies, UN Programs, ASEAN, the Asian Development Bank, and the World Bank; and (iii) existing literature. This research presented the results and discussed the findings encompassed by political and economic conditions, institutional arrangement and capacities, policy development and coordination, and participation of the public and stakeholders, as well as global green cooperation and funding, which were conditioned by the experiences from the COVID-19 pandemic and the uncertainties resulting from global geopolitical conflicts, such as the Russian–Ukrainian conflicts. Moreover, this research discussed weaknesses against strengths and threats against opportunities to suggest solutions or implications.

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“…Pham and Cepni (2022) show that EPU, stock market, and oil markets significantly affect the spillovers between green bonds and investor attention. Boutabba and Rannou (2022) investigate that the relationship between green bonds and uncertainty is time-varying, with a rising connection during periods of higher fluctuation of EPU, such as the conflict between Russia and Ukraine. There is also literature that studies the impact of policy changes in China on green bond development.…”

Section: Economic Policy Uncertainty and Green Financementioning

confidence: 99%

Oil Price Shocks, Economic Policy Uncertainty, and Green Finance: A Case of China

Wang

Umar

et al. 2022

Technological and Economic Development of Economy

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This study investigates the long- and short-run effects of crude oil price (COP) and economic policy uncertainty (EPU) on China’s green bond index (GBI) using the quantile autoregressive distributed lag model. The empirical results show that COP and EPU produce a significant positive and negative influence on GBI in the long-run across most quantiles, respectively, but their short-run counterparts are opposite direction and only significant in higher quantiles. Thus, major contributions are made accordingly and shown in the following aspects. The findings emphasise the importance of understanding how COP and EPU affect China’s green bond market for the first time. In addition, both the long- and short-run effects are captured, but long-run shocks primarily drive the green bond market. Finally, time- and quantile-varying analyses are adopted to explain the nexus between COP and EPU to GBI, which considers not only different states of the bond market but also events that occur in different time periods. Some detailed policies, such as a unified and effective green bond market, an early warning mechanism of oil price fluctuation, and prudent economic policy adjustments, are beneficial for stabilising the green finance market.

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Investor strategies in the green bond market: The influence of liquidity risks, economic factors and clientele effects

Cited by 30 publications

References 33 publications

China’s Green Bond Market: Structural Characteristics, Formation Factors, and Development Suggestions—Based on the Comparison of the Chinese and the US Green Bond Markets Structure

China’s Green Bond Market: Structural Characteristics, Formation Factors, and Development Suggestions—Based on the Comparison of the Chinese and the US Green Bond Markets Structure

Cambodian Green Economy Transition: Background, Progress, and SWOT Analysis

Oil Price Shocks, Economic Policy Uncertainty, and Green Finance: A Case of China

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