 Optimistic or pessimistic: How do investors impact the green bond market?Chi Wei Su, Xin Yue Song, Meng Qin, Oana-Ramona Lobonţ and Muhammad Umar The North American Journal of Economics and Finance, 2024, vol. 74, issue C Abstract: This study investigates the relationship between investor sentiment (IS) and the green bond market by employing bootstrap full- and sub-sample rolling-window Granger causality tests. The findings suggest a favourable impact of IS on the Green Bond Index (GBI), indicating that investors maintain an optimistic outlook on the bond market, thereby driving market expansion. This outcome is supported by the intertemporal capital asset pricing model, demonstrating an advantageous effect of IS on GBI. The beneficial and detrimental effects of GBI on IS indicate that investors is appropriate strategically modify their investment portfolios to adapt to marketplace instability. Amidst ongoing global economic and financial market uncertainties, green bonds have emerged as crucial assets for investors. Consequently, when shaping fiscal strategies, governments ought to consider the influence of IS in stimulating investor enthusiasm for green investments. Keywords: Investor sentiment; Green bond market; Causality; Time-varying (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:74:y:2024:i:c:s1062940824001736 DOI: 10.1016/j.najef.2024.102248 Access Statistics for this article The North American Journal of Economics and Finance is currently edited by Hamid Beladi More articles in The North American Journal of Economics and Finance from Elsevier |
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