XF-VG8DMT7-A Corporate Green Bonds
Abstract
Journal of Financial Economics 142 (2021) 499–516 Contents lists available at ScienceDirect Journal of Financial Economics journal homepage: www.elsevier.com/locate/jfec Corporate green bonds ✩ Caroline Flammer Questrom School of Business, Boston University, 595 Commonwealth Avenue, Boston, MA 02215, USA a r t i c l e i n f o a b s t r a c t Article history: Received 9 July 2018 Revised 16 March 2020 Accepted 14 April 2020 Available online 31 January 2021 JEL classification: G14 G32 Q56 M14 Keywords: Sustainable finance Climate change Green bonds Impact investing Corporate sustainability I examine corporate green bonds, whose proceeds finance climate-friendly projects. These bonds have become more prevalent over time, especially in industries where the envi- ronment is financially material to firm operations. I show that investors respond posi- tively to the issuance announcement, a response that is stronger for first-time issuers and bonds certified by third parties. The issuers improve their environmental performance post-issuance (i.e., higher environmental ratings and lower CO 2 emissions) and experience an increase in ownership by long-term and green investors. Overall, the findings are con- sistent with a signaling argument—by issuing green bonds, companies credibly signal their commitment toward the environment. © 2021 Elsevier B.V. All rights reserved. ✩ I thank an anonymous referee, the editor (Bill Schwert), Ruth Aguil- era, Pat Akey, Edward Baker, Petra Christman, Ramona …
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Cites (52)
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- Why Do Firms Issue Green Bonds? (2022)
People Cited in This Document
- Caroline Flammer author Columbia Business School
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Elsevier (Journal of Financial Economics) (2021). Corporate Green Bonds. XFID: XF-VG8DMT7-A. Retrieved from https://xframework.id/XFVG8DMT7A
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