How do the Green Energy Stocks React to Green Bond Issuances?
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,...
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| Format: | Article |
| Language: | English |
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Mehmet Akif Ersoy University
2024-09-01
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| Series: | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
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| Online Access: | https://dergipark.org.tr/en/download/article-file/3835646 |
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| _version_ | 1832584539997732864 |
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| author | Yavuz Gül Mehmetcan Suyadal |
| author_facet | Yavuz Gül Mehmetcan Suyadal |
| author_sort | Yavuz Gül |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-aad88ac0615d4b66bacb014c864dfdf6 |
| institution | Kabale University |
| issn | 2149-1658 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Mehmet Akif Ersoy University |
| record_format | Article |
| series | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
| spelling | doaj-art-aad88ac0615d4b66bacb014c864dfdf62025-01-27T13:05:55ZengMehmet Akif Ersoy UniversityMehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi2149-16582024-09-011131136115610.30798/makuiibf.1462249273How do the Green Energy Stocks React to Green Bond Issuances?Yavuz Gül0https://orcid.org/0000-0002-0208-6798Mehmetcan Suyadal1https://orcid.org/0000-0002-8235-7462BEYKENT ÜNİVERSİTESİBEYKENT ÜNİVERSİTESİAchieving 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.https://dergipark.org.tr/en/download/article-file/3835646green bondsevent studystock market reactionrenewable energy firms |
| spellingShingle | Yavuz Gül Mehmetcan Suyadal How do the Green Energy Stocks React to Green Bond Issuances? Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi green bonds event study stock market reaction renewable energy firms |
| title | How do the Green Energy Stocks React to Green Bond Issuances? |
| title_full | How do the Green Energy Stocks React to Green Bond Issuances? |
| title_fullStr | How do the Green Energy Stocks React to Green Bond Issuances? |
| title_full_unstemmed | How do the Green Energy Stocks React to Green Bond Issuances? |
| title_short | How do the Green Energy Stocks React to Green Bond Issuances? |
| title_sort | how do the green energy stocks react to green bond issuances |
| topic | green bonds event study stock market reaction renewable energy firms |
| url | https://dergipark.org.tr/en/download/article-file/3835646 |
| work_keys_str_mv | AT yavuzgul howdothegreenenergystocksreacttogreenbondissuances AT mehmetcansuyadal howdothegreenenergystocksreacttogreenbondissuances |