Do Shareholders Benefit from Green Bonds?

Tang, Dragon Yongjun; Zhang, Yupu

doi:10.2139/ssrn.3259555

Cited by 59 publications

(84 citation statements)

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“…This selection process yielded a final sample of 475 green bonds issued by 145 unique issuers. This sample is quite comparable to those obtained in previous studies (e.g., 241 green bonds in Tang and Zhang (2018) and 368 green bonds in Flammer (2018)). In Column (2) of Table 1, we show that the cross-country distribution of our final 4…”

supporting

confidence: 89%

“…For example, we notice that green bond issuers are large in size, exhibit an average leverage ratio of about 35%, and an average proportion of tangible assets of about 30% in total assets. These statistics are largely in line with those reported in previous literature e.g., (Tang and Zhang 2018). Notes: This table presents summary statistics for green bonds and green bond issuers.…”

supporting

confidence: 88%

“…Potential benefits for Green Bond issuers have also been analyzed by Tang and Zhang (2018). The authors found that issuers' stock prices increased significantly around the announcement of green bond issuance for firms in 28 countries during 2007-2017.…”

Section: Green Bond Marketmentioning

confidence: 99%

“…We identified 20 sustainable bonds into the final sample and removed them to keep only pure Green Bonds.3Our sample of green bonds is quite large since, as mentioned above, we took advantage of access to a more comprehensive number of databases relative to the commonly-used ones to trace green bond issues. For example, the obtained merged dataset ofTang and Zhang (2018) includes 1510 green bonds relative to 2079 in our study.…”

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confidence: 99%

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Corporate Green Bond Issuances: An International Evidence

Lebelle

Jarjir

Sassi

2020

JRFM

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Using an international sample of corporate Green bond issuances over the recent period, this paper highlights the potential consequences of the issuance of a Green bond on the issuer’s financial performance. Starting with a first sample of 2079 Green bond issuances of 190 unique issuers from 2009 to 2018, we investigate only corporate green bond issuances. Our final sample contains 475 green bonds issued by 145 unique firms. We find that the market reacts negatively to the announcement of green bond issuances. In particular, results show that the stock market reacts on the day of the green bond announcement date and the day after, and that the cumulative abnormal return is between −0.5% and −0.2%, depending on the asset pricing model (CAPM, the 3-factor Fama and French models, and the 4-factor Carhart models). This effect is mainly noticeable at the first Green Bond issuance and in developed markets. Our results provide evidence that the investors react in the same manner for Green bonds as for conventional or convertible bonds. This evidence suggests that green debt offerings convey unfavorable information about the issuing firms.

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supporting

confidence: 89%

supporting

confidence: 88%

Section: Green Bond Marketmentioning

confidence: 99%

mentioning

confidence: 99%

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Corporate Green Bond Issuances: An International Evidence

Lebelle

Jarjir

Sassi

2020

JRFM

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“…In a similar fashion,Tang and Zhang (2019) shows that following a green bond issuance (fixed income securities issued for environmental or climate-related projects), stock prices of these issuers have a positive reaction and domestic institutional investors, mainly investment advisers and pension funds, increase their share of ownership. Similarly, Flammer (2018) finds a positive stock market reaction to green bond issuance and an increase in holdings by long-term and environment-conscious investors.…”

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confidence: 93%

Climate Sin Stocks: Stock Price Reactions to Global Climate Strikes

2020

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This publication is a Technical report by the Joint Research Centre (JRC), the European Commission's science and knowledge service. It aims to provide evidence-based scientific support to the European policymaking process. The scientific output expressed does not imply a policy position of the European Commission. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of this publication.

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Green bonds, sustainable development and environmental policy in the European Union carbon market

2021

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This study assesses the non-linear effects of green bonds, conventional bonds and energy commodities on the behaviour of the cap-and-trade European Union carbon market (European Union Emissions Trading System [EU-ETS]). By estimating four models, using Markov-switching (MS) econometric methodology, non-linearities are confirmed in dynamic behaviours, observing in the global calculation a positive effect of green bonds (S&P Green and Sol Green) on the carbon market, in regimes of both high and low volatility, whereas conventional bonds (S&P Agg) and energy commodities (DJCI En) contribute to a decrease in the carbon market in regimes of high volatility. The relevance of green bonds is underlined in determining the behaviour of the carbon market, besides observing greater persistence of the low volatility regime. These results allow both investors and fund managers to implement strategies in different volatility or economic activity contexts through a diversified portfolio and green/climate structure.

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Do Shareholders Benefit from Green Bonds?

Cited by 59 publications

References 0 publications

Corporate Green Bond Issuances: An International Evidence

Corporate Green Bond Issuances: An International Evidence

Climate Sin Stocks: Stock Price Reactions to Global Climate Strikes

Green bonds, sustainable development and environmental policy in the European Union carbon market

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