The pricing of green bonds: external reviews and the shades of green

Artikel

We investigate the asset pricing implications of the greenness of bonds. To estimate a green-pricing effect, we determine the 'green bond premium' as the difference between the yields of matched conventional and green-labeled bonds. On a cross-sectional average, green bonds experience a statistically significant positive premium. This premium increases with external greenness evaluations, i.e., investors accept premiums of up to 5 basis points for bonds with a substantial environmental agenda. This external validation effect, which is strongest for bonds that are rated dark-green, may offset not incurring information costs, as this effect decreases with increasing age of bonds.

Objekt anzeigen

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Review of Managerial Science ; ISSN: 1863-6691 ; Volume: 16 ; Year: 2021 ; Issue: 3 ; Pages: 797-834 ; Berlin, Heidelberg: Springer

Klassifikation und Themen

• Klassifikation: Management ; History of Economic Thought through 1925: Quantitative and Mathematical ; Socialist Systems and Transitional Economies: General
• Thema: Green bond premium ; External review ; Second-party opinion ; Shade of green ; Climate finance ; Impact investing

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dorfleitner, Gregor ; Utz, Sebastian ; Zhang, Rongxin
• Ereignis: Veröffentlichung
• (wer): Springer
• (wo): Berlin, Heidelberg
• (wann): 2021

Weitere Informationen

• DOI: doi:10.1007/s11846-021-00458-9