Does Green Bonds Placement Create Value For Firms?

Kuchin, Ilia; Baranovsky, Gennadiy; Dranev, Yury; Chulok, Alexander

doi:10.2139/ssrn.3477918

Cited by 11 publications

(9 citation statements)

References 12 publications

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“…Investors prefer green bonds due to their higher yields (Lautsi, 2019) and lower risk of loss compared to traditional bonds (Nanayakkara and Colombage, 2019). In addition, SEF 41,3 Kuchin et al (2019) found that the issue of green bonds has been met with favorable market reception and can raise a company's worth. Studies also show that the issuance of green bonds affects the share price of a company, and its value and liquidity (Flammer, 2020;Banga, 2019) examined whether green bonds solely attract environmentally aware investors.…”

Section: Literature Reviewmentioning

confidence: 99%

Uncovering time and frequency co-movement among green bonds, energy commodities and stock market

Yadav,

Ashok,

Taghizadeh-Hesary

et al. 2023

SEF

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Purpose This paper aims to examine the comovement among green bonds, energy commodities and stock market to determine the advantages of adding green bonds to a diversified portfolio. Design/methodology/approach Generic 1 Natural Gas and Energy Select SPDR Fund are used as proxies to measure energy commodities, bonds index of S&P Dow Jones and Bloomberg Barclays MSCI are used to represent green bonds and the New York Stock Exchange is considered to measure the stock market. Granger causality test, wavelet analysis and network analysis are applied to daily price for the select markets from August 26, 2014, to March 30, 2021. Findings Results from the Granger causality test indicate no causality between any pair of variables, while cross wavelet transform and wavelet coherence analysis confirm strong coherence at a high scale during the pandemic, validating comovement among the three asset classes. In addition, network analysis further corroborates this connectedness, implying a strong association of the stock market with the energy commodity market. Originality/value This study offers new evidence of the temporal association among the US stock market, energy commodities and green bonds during the COVID-19 crisis. It presents a novel approach that measures and evaluates comovement among the constituent series, simultaneously using both wavelet and network analysis.

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Section: Literature Reviewmentioning

confidence: 99%

Uncovering time and frequency co-movement among green bonds, energy commodities and stock market

Yadav,

Ashok,

Taghizadeh-Hesary

et al. 2023

SEF

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“…El autor evidencia una reacción positiva en el precio de las acciones de la organización ante el anuncio de emisión de bonos verdes. Kuchin et al (2019) analizan una muestra de 95 bonos entre bonos verdes y bonos con alineación climática. En el estudio los autores evidencian que la emisión de ambos bonos causa una reacción positiva del mercado e incrementa el valor de la empresa emisora del bono.…”

Section: Efectos En El Mercadounclassified

“…La mayoría de los estudios realizados indican que los mercados de valores reaccionan positivamente a la emisión de bonos verdes. Sin embargo, Kuchin et al (2019) argumentan que el mercado aún no está muy desarrollado, los datos son limitados y los resultados son muy sensibles a la cantidad de observaciones, especialmente si se tiene en cuenta el crecimiento del mercado. Además, estos estudios en su mayoría se enfocan solo en bonos verdes etiquetados y sus emisores, mientras que existe una gran cantidad de emisores orientados a inversiones que también son verdes o están en transición a tendencias verdes, pero no etiquetaron sus bonos.…”

Section: Efectos En El Mercadounclassified

Bonos verdes: un análisis integral

Forest Yepez

2023

LAJED

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Los bonos verdes son una importante innovación financiera con potencial de movilizar recursos para inversiones que contribuyan al medio ambiente y la mitigación y adaptación al cambio climático. Con el objetivo de brindar un mayor entendimiento sobre este mercado, este artículo analiza la información de mercado disponible y la literatura sobre los principales temas relacionados con los bonos verdes. La mayoría de los estudios encuentran evidencia de greenium, de una reacción positiva de los mercados ante la emisión de bonos verdes y de un impacto positivo de los bonos verdes en el medio ambiente y el cambio climático. Sin embargo, las características singulares del mercado de bonos verdes limitan la obtención de evidencia concluyente sobre sus potenciales efectos. Por ello, también se analizan las principales barreras del mercado y las políticas públicas para desarrollar el mercado de bonos verdes.

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“…MacAskill et al (2020) in their study emphasize that green premium is because of different type of bonds, bond rating, third party assessment and type of issuer. Few studies show that green bond has positive impact on the firm value, liquidity, and stock price of company (Flammer, 2020;Kuchin et al 2019;Tang and Zhang, 2020). These mixed results can be because of different sample sizes, time, or methodology but eventually the studies don't agree on any common grounds.…”

Section: Literature Reviewmentioning

confidence: 99%

Dynamic connectedness of green bond with financial markets of European countries under OECD economies

Yadav

Mishra

Ashok

2022

Econ Change Restruct

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This paper examines the dynamic connectedness between green bonds and OECD financial markets of European countries. The study is conducted on daily price of green bonds and selected European stock markets from January 27, 2015, to August 4, 2021. Top ten European countries namely Luxembourg, Switzerland, Norway, Denmark, Germany, Netherlands, Iceland, Austria, Sweden, and Belgium are included within the OECD economies. The study uses Diebold and Yilmaz and Barunik & Krehlic tests to examine the connectedness between the economies and green bonds in short, medium, and long term. Result exhibits volatility across all frequency cycles. Brussel Stock Exchange and Euronext Amsterdam are identified as high-risk markets in the OECD European market. Evidence emerging from this study advocate the inclusion of green bonds in these financial markets for shorter time periods only. Results from this study are expected to have practical implications for portfolio managers, investors, and market regulators, suggesting incorporation of green bonds in investor portfolio for efficient diversification of risk.

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Does Green Bonds Placement Create Value For Firms?

Cited by 11 publications

References 12 publications

Uncovering time and frequency co-movement among green bonds, energy commodities and stock market

Uncovering time and frequency co-movement among green bonds, energy commodities and stock market

Bonos verdes: un análisis integral

Dynamic connectedness of green bond with financial markets of European countries under OECD economies

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