Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Investors’ Value Perception of Green and Brown Bond Issuances

Werleus, Eric LU and Johansson, Harald LU (2022) NEKN02 20221
Department of Economics
Abstract
The purpose of this study is to investigate if the equity markets react more positively to the issuance announcement of a green bond compared to the issuance announcement of a brown bond and if the introduction of the EU taxonomy has had an effect on the announcement effects. The study contributes to the existing literature by using an updated sample of 511 bonds from 61 issuers stemming from countries within the EU and testing if investor behavior regarding the announcement effect has changed after introducing the EU taxonomy. The study uses an event-study methodology and regression analysis for robustness. It contributes to the existing literature as the results do not show any positive significant announcement effect on the stock price... (More)
The purpose of this study is to investigate if the equity markets react more positively to the issuance announcement of a green bond compared to the issuance announcement of a brown bond and if the introduction of the EU taxonomy has had an effect on the announcement effects. The study contributes to the existing literature by using an updated sample of 511 bonds from 61 issuers stemming from countries within the EU and testing if investor behavior regarding the announcement effect has changed after introducing the EU taxonomy. The study uses an event-study methodology and regression analysis for robustness. It contributes to the existing literature as the results do not show any positive significant announcement effect on the stock price regarding the issuance of a green bond, but instead a significant negative effect after the announcement of brown bond issuance. Furthermore, the results suggest investors' value perception in regards to the announcement of green and brown bonds has changed after the announcement of the EU taxonomy. (Less)
Please use this url to cite or link to this publication:
author
Werleus, Eric LU and Johansson, Harald LU
supervisor
organization
course
NEKN02 20221
year
type
H1 - Master's Degree (One Year)
subject
keywords
Green bonds, EU-taxonomy, Event study, Cumulative Abnormal Returns
language
English
id
9090141
date added to LUP
2022-10-10 09:36:08
date last changed
2022-10-10 09:36:08
@misc{9090141,
  abstract     = {{The purpose of this study is to investigate if the equity markets react more positively to the issuance announcement of a green bond compared to the issuance announcement of a brown bond and if the introduction of the EU taxonomy has had an effect on the announcement effects. The study contributes to the existing literature by using an updated sample of 511 bonds from 61 issuers stemming from countries within the EU and testing if investor behavior regarding the announcement effect has changed after introducing the EU taxonomy. The study uses an event-study methodology and regression analysis for robustness. It contributes to the existing literature as the results do not show any positive significant announcement effect on the stock price regarding the issuance of a green bond, but instead a significant negative effect after the announcement of brown bond issuance. Furthermore, the results suggest investors' value perception in regards to the announcement of green and brown bonds has changed after the announcement of the EU taxonomy.}},
  author       = {{Werleus, Eric and Johansson, Harald}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Investors’ Value Perception of Green and Brown Bond Issuances}},
  year         = {{2022}},
}