Green bond issuance and credit risk: international evidence
| dc.contributor.author | Ballester Miquel, Laura | |
| dc.contributor.author | González Urteaga, Ana | |
| dc.contributor.author | Shen, L. | |
| dc.contributor.department | Gestión de Empresas | es_ES |
| dc.contributor.department | Enpresen Kudeaketa | eu |
| dc.contributor.department | Institute for Advanced Research in Business and Economics - INARBE | en |
| dc.contributor.funder | Universidad Pública de Navarra / Nafarroako Unibertsitate Publikoa, PJUPNA2023-11379 | |
| dc.date.accessioned | 2024-09-30T12:31:56Z | |
| dc.date.available | 2024-09-30T12:31:56Z | |
| dc.date.issued | 2024 | |
| dc.date.updated | 2024-09-30T12:27:47Z | |
| dc.description.abstract | We present the first empirical study of the impact of corporate green bond issuance announcements on issuer credit risk, as measured by their CDS spreads. We use a broad international sample of 1,048 green bonds issued between 2013 and 2022 by 200 entities from 26 countries. Our analysis reveals a significant, though not uniform, reaction in the CDSs. The sector of activity emerges as a critical determinant, particularly with respect to environmental exposure. While sectors highly exposed to environmental risk exhibit a reduction in issuer credit risk, all others, especially financial entities, react in the opposite direction. Our study highlights that the impact on credit risk is influenced by several other factors, including the issuer's overall ESG score, its E score, and various country-level metrics such as development level, environmental performance and political rights. We also identify other factors that affect credit risk, such as green bond ratings and operating cash flow. | en |
| dc.description.sponsorship | Laura Ballester and Ana Gonzalez-Urteaga acknowledge financial support from Fundación Ramón Areces and Grant TED2021- 131216B-I00 funded by MCIN/AEI/10.13039/501100011033 and by “European Union NextGenerationEU/PRTR”. In addition, Ana Gonzalez-Urteaga acknowledges financial support from the Public University of Navarre (PJUPNA2023–11379). | |
| dc.format.mimetype | application/pdf | en |
| dc.identifier.citation | Ballester, L., González-Urteaga, A., Shen, L. (2024) Green bond issuance and credit risk: International evidence. Journal of International Financial Markets, Institutions and Money, 94, 1-22. https://doi.org/10.1016/j.intfin.2024.102013. | |
| dc.identifier.doi | 10.1016/j.intfin.2024.102013 | |
| dc.identifier.issn | 1042-4431 | |
| dc.identifier.uri | https://academica-e.unavarra.es/handle/2454/51881 | |
| dc.language.iso | eng | |
| dc.publisher | Elsevier | |
| dc.relation.ispartof | Journal of International Financial Markets, Institutions and Money 94 (2024) 102013 94 (2024) 102013 | |
| dc.relation.publisherversion | https://doi.org/10.1016/j.intfin.2024.102013 | |
| dc.rights | © 2024 The Authors. This is an open access article under the CC BY-NC license. | |
| dc.rights.accessRights | info:eu-repo/semantics/openAccess | |
| dc.rights.uri | https://creativecommons.org/licenses/by-nc/4.0/ | |
| dc.subject | CDS spreads | en |
| dc.subject | Credit risk | en |
| dc.subject | Event study | en |
| dc.subject | Green bonds | en |
| dc.subject | Sustainable finance | en |
| dc.title | Green bond issuance and credit risk: international evidence | en |
| dc.type | info:eu-repo/semantics/article | |
| dc.type.version | info:eu-repo/semantics/publishedVersion | |
| dspace.entity.type | Publication | |
| relation.isAuthorOfPublication | 095d724d-61c5-408c-b091-6ea37e9beb6b | |
| relation.isAuthorOfPublication.latestForDiscovery | 095d724d-61c5-408c-b091-6ea37e9beb6b |