Browsing by Author "Basedau, Louis Johannes"
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- Stock price reactions to green bond issuances : a comparative analysis of Europe and the USPublication . Basedau, Louis Johannes; Venter, ZoëThis study examines the impact of green bond issuances on stock prices in Europe and the United States, focusing on differences in market reactions between these two regions. Utilizing an event study methodology, the analysis covers green bond announcements from publicly traded firms between 2015 and 2024. The research evaluates expected stock returns based on historical market data and risk-adjusted performance measures, analyzing event windows of (-2/2), (-2/5), and (-5/5) days to capture short- and mid-term market responses. Findings indicate a generally negative stock price reaction following green bond announcements, with a more pronounced and prolonged decline in the U.S. than in Europe. Regression analyses reveal that market risk perceptions significantly influence cumulative abnormal returns (CARs), particularly in the U.S., where regulatory uncertainty and concerns over greenwashing contribute to more sceptical investor sentiment. In contrast, European markets exhibit more stable reactions, likely due to structured regulatory frameworks enhancing transparency and credibility. Firm-specific factors such as leverage and profitability further shape market responses, while ESG ratings show no significant impact.