Do Investors Get an Advantage from Corporate Green Bond Issuance? A Cross-Country Study

Riaz Tabassum (), Selamat Aslam Izah (), Nor Normaziah Mohd () and Hassan Ahmad Fahmi Sheikh ()
Additional contact information
Riaz Tabassum: School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia University of the Punjab Jhelum Campus, Pakistan
Selamat Aslam Izah: School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia
Nor Normaziah Mohd: School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia
Hassan Ahmad Fahmi Sheikh: School of Business and Economics, Universiti Putra Malaysia, Serdang, Malaysia

Studia Universitatis „Vasile Goldis” Arad – Economics Series, 2025, vol. 35, issue 2, 1-37

Abstract: This study examines the stock’s response to corporate green bond issuance announcements. Analyzing a dataset of 230 global corporate green bond issuers from 38 countries between 2013 and 2022 through an event study, the findings reveal a positive market reaction, especially within the non-financial corporate sector. Green bonds in this sector are primarily used to fund their own eco-friendly projects, signaling a commitment to environmental sustainability, and generating investor confidence. Variation in market reactions across countries is noted, with developed countries exhibiting a significantly more positive response. This suggests that environmental initiatives hold greater value in these regions, highlighting the alignment between sustainable practices and investor sentiment. These results emphasize the potential advantages of integrating green bonds and their environmental commitments into investment strategies, particularly for portfolio diversification and attracting investors seeking sustainable opportunities.

Keywords: Green bonds; Signaling theory; Investor attention; Event study (search for similar items in EconPapers)
JEL-codes: G11 G14 G23 O13 O16 Q56 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/sues-2025-0006 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:suvges:v:35:y:2025:i:2:p:1-37:n:1001

DOI: 10.2478/sues-2025-0006

Access Statistics for this article

Studia Universitatis „Vasile Goldis” Arad – Economics Series is currently edited by Florin Cornel Dumiter

More articles in Studia Universitatis „Vasile Goldis” Arad – Economics Series from Sciendo
Bibliographic data for series maintained by Peter Golla ().