The reputation effect of repeated green-bond issuance and its impact on the cost of capital
Uložené v:
| Názov: | The reputation effect of repeated green-bond issuance and its impact on the cost of capital |
|---|---|
| Autori: | Petreski, Aleksandar, Schäfer, Dorothea, Stephan, Andreas, 1968 |
| Zdroj: | Business Strategy and the Environment. 34(2):2436-2448 |
| Predmety: | bond issuance, ESG, green debt, greenwashing risk, reputation capital |
| Popis: | This study explores the effect of frequent green-bond issuance on a firm's financing costs. Using a sample of listed Swedish real estate companies issuing a total of 1074 bonds over the period from 2011 to 2021, difference-in-differences analyses and instrumental variable estimations are applied to identify the causal impact of frequent green-bond vis-à-vis frequent non-green-bond issuance on a firm's cost of capital and credit rating. The paper argues that repetitive issuance lowers a firm's cost of capital, while the effects of first or one-time green-bond issuance are the opposite. In line with the reputation capital hypothesis, issuing green bonds even lowers the firm's cost of equity capital, while issuing non-green bonds does not affect the cost of equity. |
| Popis súboru: | |
| Prístupová URL adresa: | https://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-66886 https://doi.org/10.1002/bse.4111 |
| Databáza: | SwePub |
Full Text Finder 
Nájsť tento článok vo Web of Science | Abstrakt: | This study explores the effect of frequent green-bond issuance on a firm's financing costs. Using a sample of listed Swedish real estate companies issuing a total of 1074 bonds over the period from 2011 to 2021, difference-in-differences analyses and instrumental variable estimations are applied to identify the causal impact of frequent green-bond vis-à-vis frequent non-green-bond issuance on a firm's cost of capital and credit rating. The paper argues that repetitive issuance lowers a firm's cost of capital, while the effects of first or one-time green-bond issuance are the opposite. In line with the reputation capital hypothesis, issuing green bonds even lowers the firm's cost of equity capital, while issuing non-green bonds does not affect the cost of equity. |
|---|---|
| ISSN: | 09644733 10990836 |
| DOI: | 10.1002/bse.4111 |