In this study, we analyze a sample of 1,630 corporate green bonds issued internationally between November 2012 and January 2024 to investigate the yield differences between green and non- green bonds. Our findings reveal a small greenium, particularly significant in the secondary market among carbon-intensive industries, first-time green bond issuers, and riskier issuances. We show that Geopolitical Risk (GPR) significantly influences the greenium in the secondary market, primarily driven by geopolitical acts rather than threats. Additionally, we establish that third- party certifications and corporate exposure to environmental risk are critical in explaining the GPR-greenium relationship. These results underscore the importance of GPR in enhancing investor preference for green bonds, offering important implications for both practice and policy.

Fiorillo, P., Meles, A., Salerno, D., Verdoliva, V., Geopolitical turmoil and investor green preference: Evidence from the corporate bond market, <<JOURNAL OF INTERNATIONAL MONEY AND FINANCE>>, 2024; 149 (N/A): N/A-N/A. [doi:10.1016/j.jimonfin.2024.103218] [https://hdl.handle.net/10807/298916]

Geopolitical turmoil and investor green preference: Evidence from the corporate bond market

Fiorillo, Paolo
Primo
;
2024

Abstract

In this study, we analyze a sample of 1,630 corporate green bonds issued internationally between November 2012 and January 2024 to investigate the yield differences between green and non- green bonds. Our findings reveal a small greenium, particularly significant in the secondary market among carbon-intensive industries, first-time green bond issuers, and riskier issuances. We show that Geopolitical Risk (GPR) significantly influences the greenium in the secondary market, primarily driven by geopolitical acts rather than threats. Additionally, we establish that third- party certifications and corporate exposure to environmental risk are critical in explaining the GPR-greenium relationship. These results underscore the importance of GPR in enhancing investor preference for green bonds, offering important implications for both practice and policy.
2024
Inglese
Fiorillo, P., Meles, A., Salerno, D., Verdoliva, V., Geopolitical turmoil and investor green preference: Evidence from the corporate bond market, <<JOURNAL OF INTERNATIONAL MONEY AND FINANCE>>, 2024; 149 (N/A): N/A-N/A. [doi:10.1016/j.jimonfin.2024.103218] [https://hdl.handle.net/10807/298916]
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/298916
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? 0
social impact