 For the love of the environment: An analysis of Green versus Brown bonds during the COVID-19 pandemicHande Ayaydın Hacıömeroğlu, Seza Danışoğlu and Z. Nuray Güner Finance Research Letters, 2022, vol. 47, issue PA Abstract: Increased awareness among investors about environmental and social issues made green bonds a popular investment alternative over the last decade. This study analyzes whether the primary and secondary market return performance of green bonds is affected from the market conditions induced by the pandemic. Results presented in this study show that while both green and comparable conventional (brown) bonds issued by corporations experienced a decline in their primary market yields following the start of the pandemic, the decline for the green bonds was somewhat larger, resulting in green bond yields that are 32 basis points lower on average. Secondary market results of the study confirm the stronger demand for green bonds in this market as well and show that while both green and brown bonds experience a decline in their secondary market returns during the pandemic, the decrease in brown bond returns is 45 basis points larger compared to green bonds. Findings also suggest that failure to consider issuer types may lead to biased results when green bonds are compared against their conventional alternatives. Keywords: Green bonds; Greenium; COVID-19 pandemic; Diff-in-diff (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:finlet:v:47:y:2022:i:pa:s1544612321005274 DOI: 10.1016/j.frl.2021.102576 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.