Browsing by Author "Souza, Gabriela Silva de"
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- Green bonds in a green stock market? : how shareholders perceive the issuance of green bonds in EuropePublication . Souza, Gabriela Silva de; Revelo, JoséEnvironmental concerns have been gaining increasing attention worldwide, and the financial sector has been no exception to this trend. In this scenario, green bonds have emerged as an attractive financial instrument for firms to issue debt and finance sustainabilityrelated projects. This study is focused on evaluating how shareholders react to the issuance of corporate green bonds and how that reaction changes in comparison to nongreen bonds and in periods of heightened environmental regulation. Using a dataset of 1,748 bonds issued in European Union countries between 2013 and 2023, the analysis employs descriptive statistics and panel data regressions. The main findings indicate that the issuance of green bonds can contribute to positive and statistically significant cumulative abnormal returns, although these stock market reactions do not tend to change significantly in periods of intense environmental regulation. Additionally, there were no significant findings indicating that after issuing green bonds, companies experience lower cost of debt or higher profitability. This paper contributes to the existing literature surrounding green bonds and impact investing, highlighting the financial benefits of such actions.