Dorfleitner, Gregor and Utz, Sebastian and Zhang, Rongxin (2022) The pricing of green bonds: external reviews and the shades of green. REVIEW OF MANAGERIAL SCIENCE, 16 (3). pp. 797-834. ISSN 1863-6683, 1863-6691
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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.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Green bond premium; External review; Second-party opinion; Shade of green; Climate finance; Impact investing |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Finanzierung (Prof. Dr. Gregor Dorfleitner) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 17 Aug 2022 11:02 |
| Last Modified: | 17 Aug 2022 11:02 |
| URI: | https://pred.uni-regensburg.de/id/eprint/46585 |
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