{"title":"Optimistic or pessimistic: How do investors impact the green bond market?","authors":"","doi":"10.1016/j.najef.2024.102248","DOIUrl":null,"url":null,"abstract":"<div><p>This study investigates the relationship between investor sentiment (IS) and the green bond market by employing bootstrap full- and sub-sample rolling-window Granger causality tests. The findings suggest a favourable impact of IS on the Green Bond Index (GBI), indicating that investors maintain an optimistic outlook on the bond market, thereby driving market expansion. This outcome is supported by the intertemporal capital asset pricing model, demonstrating an advantageous effect of IS on GBI. The beneficial and detrimental effects of GBI on IS indicate that investors is appropriate strategically modify their investment portfolios to adapt to marketplace instability. Amidst ongoing global economic and financial market uncertainties, green bonds have emerged as crucial assets for investors. Consequently, when shaping fiscal strategies, governments ought to consider the influence of IS in stimulating investor enthusiasm for green investments.</p></div>","PeriodicalId":47831,"journal":{"name":"North American Journal of Economics and Finance","volume":null,"pages":null},"PeriodicalIF":3.8000,"publicationDate":"2024-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"North American Journal of Economics and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1062940824001736","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
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Abstract
This study investigates the relationship between investor sentiment (IS) and the green bond market by employing bootstrap full- and sub-sample rolling-window Granger causality tests. The findings suggest a favourable impact of IS on the Green Bond Index (GBI), indicating that investors maintain an optimistic outlook on the bond market, thereby driving market expansion. This outcome is supported by the intertemporal capital asset pricing model, demonstrating an advantageous effect of IS on GBI. The beneficial and detrimental effects of GBI on IS indicate that investors is appropriate strategically modify their investment portfolios to adapt to marketplace instability. Amidst ongoing global economic and financial market uncertainties, green bonds have emerged as crucial assets for investors. Consequently, when shaping fiscal strategies, governments ought to consider the influence of IS in stimulating investor enthusiasm for green investments.
期刊介绍：
The focus of the North-American Journal of Economics and Finance is on the economics of integration of goods, services, financial markets, at both regional and global levels with the role of economic policy in that process playing an important role. Both theoretical and empirical papers are welcome. Empirical and policy-related papers that rely on data and the experiences of countries outside North America are also welcome. Papers should offer concrete lessons about the ongoing process of globalization, or policy implications about how governments, domestic or international institutions, can improve the coordination of their activities. Empirical analysis should be capable of replication. Authors of accepted papers will be encouraged to supply data and computer programs.
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