The value of external reviews in the secondary green bond market
(2022) In Finance Research Letters 46.- Abstract
In the green bond market, bond issuers can obtain various types of external reviews to validate their green claims. This paper examines the impact of external reviews in the form of verification, second party opinion (SPO), and green bond rating on the yield spread between a green bond and a paired conventional bond in the secondary green bond market. We perform coarsened exact matching, followed by regression analysis. The results of our analysis show that external reviews are effective signaling tools for issuers in the financial industry, and an SPO most effectively signals the credibility and quality of greenness information.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/b2432c0f-49a3-465b-a65a-7ed474c360a4
- author
- Simeth, Nagihan LU
- organization
- publishing date
- 2022
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Bond yield, External review, Green bond, Information asymmetry
- in
- Finance Research Letters
- volume
- 46
- article number
- 102306
- publisher
- Elsevier
- external identifiers
-
- scopus:85110601684
- ISSN
- 1544-6123
- DOI
- 10.1016/j.frl.2021.102306
- language
- English
- LU publication?
- yes
- id
- b2432c0f-49a3-465b-a65a-7ed474c360a4
- date added to LUP
- 2021-09-06 08:33:57
- date last changed
- 2022-10-31 14:59:18
@article{b2432c0f-49a3-465b-a65a-7ed474c360a4, abstract = {{<p>In the green bond market, bond issuers can obtain various types of external reviews to validate their green claims. This paper examines the impact of external reviews in the form of verification, second party opinion (SPO), and green bond rating on the yield spread between a green bond and a paired conventional bond in the secondary green bond market. We perform coarsened exact matching, followed by regression analysis. The results of our analysis show that external reviews are effective signaling tools for issuers in the financial industry, and an SPO most effectively signals the credibility and quality of greenness information.</p>}}, author = {{Simeth, Nagihan}}, issn = {{1544-6123}}, keywords = {{Bond yield; External review; Green bond; Information asymmetry}}, language = {{eng}}, publisher = {{Elsevier}}, series = {{Finance Research Letters}}, title = {{The value of external reviews in the secondary green bond market}}, url = {{http://dx.doi.org/10.1016/j.frl.2021.102306}}, doi = {{10.1016/j.frl.2021.102306}}, volume = {{46}}, year = {{2022}}, }