How do the Green Energy Stocks React to Green Bond Issuances?

Mehmetcan Suyadal; Yavuz Gül

Makale detayları

How do the Green Energy Stocks React to Green Bond Issuances?

Yazarlar:

Mehmetcan Suyadal | Yavuz Gül

Yayıncı:

Burdur Mehmet Akif Ersoy University

Ana Başlıklar:

Environment and Climate Finance | Finance | Investment and Portfolio Management

Dergi:

Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.11 Issue 3, pp.1136-1156

Belge Tipi:

Makale

Yayın Tarihi:

9/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001328885

pISSN:

2149-1658

Anahtar kelimeler:

Özet:

 Achieving sustainable development is one of the main issues at the global level and both public and private sector enterprises need to make large  scale investments to fight against climate change. In this respect, green bonds gain importance to raise money for environmentally  friendly projects, especially clean energy. Proceeds from green bonds are earmarked towards financing of investments that have positive environmental impacts. This paper explores the relationship among green bond issuances and stock market reaction with special focus on renewable energy firms. Herein, through a dataset of green bond issuance announcements worldwide by 46 unique firms over the period from 2014 to 2023, we investigate how the share prices respond to such announcements using event  study methodology. From the empirical evidence of the downward stock price movements, we suggest that investors react negatively to the announcement of green bond issuances. In other words, we find significant and negative cumulative average abnormal returns CAAR across all the event windows except in the window of 0, 10, meaning that our findings are robust to several alternative event windows. Further, we determine that the share price response, in general, does not differ depending on the use of green bond proceeds and the years.

 Achieving sustainable development is one of the main issues at the global level and both public and private sector enterprises need to make large  scale investments to fight against climate change. In this respect, green bonds gain importance to raise money for environmentally  friendly projects, especially clean energy. Proceeds from green bonds are earmarked towards financing of investments that have positive environmental impacts. This paper explores the relationship among green bond issuances and stock market reaction with special focus on renewable energy firms. Herein, through a dataset of green bond issuance announcements worldwide by 46 unique firms over the period from 2014 to 2023, we investigate how the share prices respond to such announcements using event  study methodology. From the empirical evidence of the downward stock price movements, we suggest that investors react negatively to the announcement of green bond issuances. In other words, we find significant and negative cumulative average abnormal returns CAAR across all the event windows except in the window of 0, 10, meaning that our findings are robust to several alternative event windows. Further, we determine that the share price response, in general, does not differ depending on the use of green bond proceeds and the years.

 Achieving sustainable development is one of the main issues at the global level and both public and private sector enterprises need to make large  scale investments to fight against climate change. In this respect, green bonds gain importance to raise money for environmentally  friendly projects, especially clean energy. Proceeds from green bonds are earmarked towards financing of investments that have positive environmental impacts. This paper explores the relationship among green bond issuances and stock market reaction with special focus on renewable energy firms. Herein, through a dataset of green bond issuance announcements worldwide by 46 unique firms over the period from 2014 to 2023, we investigate how the share prices respond to such announcements using event  study methodology. From the empirical evidence of the downward stock price movements, we suggest that investors react negatively to the announcement of green bond issuances. In other words, we find significant and negative cumulative average abnormal returns CAAR across all the event windows except in the window of 0, 10, meaning that our findings are robust to several alternative event windows. Further, we determine that the share price response, in general, does not differ depending on the use of green bond proceeds and the years.

 Achieving sustainable development is one of the main issues at the global level and both public and private sector enterprises need to make large  scale investments to fight against climate change. In this respect, green bonds gain importance to raise money for environmentally  friendly projects, especially clean energy. Proceeds from green bonds are earmarked towards financing of investments that have positive environmental impacts. This paper explores the relationship among green bond issuances and stock market reaction with special focus on renewable energy firms. Herein, through a dataset of green bond issuance announcements worldwide by 46 unique firms over the period from 2014 to 2023, we investigate how the share prices respond to such announcements using event  study methodology. From the empirical evidence of the downward stock price movements, we suggest that investors react negatively to the announcement of green bond issuances. In other words, we find significant and negative cumulative average abnormal returns CAAR across all the event windows except in the window of 0, 10, meaning that our findings are robust to several alternative event windows. Further, we determine that the share price response, in general, does not differ depending on the use of green bond proceeds and the years.

Makale detayları

How do the Green Energy Stocks React to Green Bond Issuances?

Yazarlar:

Mehmetcan Suyadal | Yavuz Gül

Yayıncı:

Burdur Mehmet Akif Ersoy University

Ana Başlıklar:

Environment and Climate Finance | Finance | Investment and Portfolio Management

Dergi:

Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.11 Issue 3, pp.1136-1156

Belge Tipi:

Makale

Yayın Tarihi:

9/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001328885

pISSN:

2149-1658

Green Bonds

Event Study

Stock Market Reaction

Renewable Energy Firms

Sayı

Makale detayları

How do the Green Energy Stocks React to Green Bond Issuances?

Yazarlar: Mehmetcan Suyadal | Yavuz Gül

Yayıncı: Burdur Mehmet Akif Ersoy University

Ana Başlıklar: Environment and Climate Finance | Finance | Investment and Portfolio Management

Dergi: Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.11 Issue 3, pp.1136-1156

Belge Tipi: Makale

Yayın Tarihi: 9/2024

Belge Dili: İngilizce

Document ID (Org No.): 2001328885

pISSN: 2149-1658

Green Bonds

Event Study

Stock Market Reaction

Renewable Energy Firms

Sayı

Yazarlar:

Mehmetcan Suyadal | Yavuz Gül

Yayıncı:

Burdur Mehmet Akif Ersoy University

Ana Başlıklar:

Environment and Climate Finance | Finance | Investment and Portfolio Management

Dergi:

Journal of Mehmet Akif Ersoy University Economics and Administrative Sciences Faculty Vol.11 Issue 3, pp.1136-1156

Belge Tipi:

Makale

Yayın Tarihi:

9/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001328885

pISSN:

2149-1658