Green Bonds: A Propitious Financial Instrument of Climate Finance

IF 3 Q2 BUSINESS Vision-The Journal of Business Perspective Pub Date : 2023-02-08 DOI:10.1177/09722629221138679

P. Sreelakshmi, R. Greeshma

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Abstract

Green bonds are a comparatively recent investment mechanism for green initiatives and are perceived as the first line of climate change protection. The aim of the article is to decide if the issuing of a green bond is perceived to be good news for market players, and also to ascertain whether developing markets, relative to established markets, are more inclined towards green bonds to tackle climate change. The study used an international sample of recent green bond issues and illustrated the possible effects of the issuing of a green bond for the issuer. A sample of 392 green bonds released from 2017 to 2020 is included. Event study methodology is used to analyse investor response to green bond issuance. Over the years, emerging markets have been found to be keen on greening projects by green bonds, much in line with established markets. The findings suggest that on the day of issuance of the green bonds the stock market responds adversely and reacts positively after the day. Hence statistical technique is applied on different event windows to obtain the cumulative abnormal returns (CAR). Statistical analysis concludes that the market responds adversely to the issuing of a green bond. This influence is particularly evident in the first issuing of green bonds and in developing markets. This research shows that proposals of green debt transmit unfavourable knowledge about the issuing companies. These results are relevant only in the case of green bonds issued by listed firms.

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绿色债券:气候融资的有利金融工具

绿色债券是一种相对较新的绿色倡议投资机制，被视为保护气候变化的第一线。本文的目的是确定绿色债券的发行是否被认为是市场参与者的好消息，并确定相对于成熟市场，发展中市场是否更倾向于使用绿色债券来应对气候变化。该研究使用了最近绿色债券发行的国际样本，并说明了发行绿色债券对发行人可能产生的影响。本文选取了2017年至2020年发行的392只绿色债券作为样本。本文采用事件研究方法分析投资者对绿色债券发行的反应。多年来，人们发现新兴市场热衷于绿色债券的绿色项目，这与成熟市场非常一致。研究结果表明，在绿色债券发行当天，股票市场的反应是消极的，而在发行当天之后，股票市场的反应是积极的。因此，将统计技术应用于不同的事件窗口来获得累积异常收益(CAR)。统计分析得出结论，市场对绿色债券的发行反应不利。这种影响在绿色债券的首次发行和发展中市场尤为明显。研究表明，绿色债务的提议传递了对发行公司的不利知识。这些结果仅适用于上市公司发行的绿色债券。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Vision-The Journal of Business Perspective Multiple-

CiteScore

4.60

自引率

0.00%

发文量

121

期刊介绍： Vision-The Journal of Business Perspective is a quarterly peer-reviewed journal of the Management Development Institute, Gurgaon, India published by SAGE Publications. This journal contains papers in all functional areas of management, including economic and business environment. The journal is premised on creating influence on the academic as well as corporate thinkers. Vision-The Journal of Business Perspective is published in March, June, September and December every year. Its targeted readers are researchers, academics involved in research, and corporates with excellent professional backgrounds from India and other parts of the globe. Its contents have been often used as supportive course materials by the academics and corporate professionals. The journal has been providing opportunity for discussion and exchange of ideas across the widest spectrum of scholarly opinions to promote theoretical, empirical and comparative research on problems confronting the business world. Most of the contributors to this journal range from the outstanding and the well published to the upcoming young academics and corporate functionaries. The journal publishes theoretical as well as applied research works.