ReportDOI
Financing the Response to Climate Change: The Pricing and Ownership of U.S. Green Bonds
Malcolm Baker,Malcolm Baker,Daniel Bergstresser,George Serafeim,Jeffrey Wurgler,Jeffrey Wurgler +5 more
TLDR
In this article, the authors study green bonds, which are bonds whose proceeds are used for environmentally sensitive purposes, and find that green municipal bonds are issued at a premium to otherwise similar ordinary bonds.Abstract:
We study green bonds, which are bonds whose proceeds are used for environmentally sensitive purposes. After an overview of the U.S. corporate and municipal green bonds markets, we study pricing and ownership patterns using a simple framework that incorporates assets with nonpecuniary utility. As predicted, we find that green municipal bonds are issued at a premium to otherwise similar ordinary bonds. We also confirm that green bonds, particularly small or essentially riskless ones, are more closely held than ordinary bonds. These pricing and ownership effects are strongest for bonds that are externally certified as green.read more
Citations
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What do we know about the price spillover between green bonds and Islamic stocks and stock market indices?
TL;DR: In this paper , the risk transmission, linkages, and directional predictability between green bonds, Islamic stocks, and other asset classes were investigated using daily data from November 2008 to August 2020, using the Standard & Poor's (S&P) Green Bond Index to represent the green bond market and the Dow Jones Islamic World Index and S&P Global Shariah Indices to represent Islamic stocks.
Journal ArticleDOI
Impact case or impact washing? An analysis of investors’ strategies to influence corporate behavior
TL;DR: In this paper , the authors argue that the very task of socially responsible investment (SRI) today is to achieve impact, and based on extensive empirical studies on how different strategies deliver on this impact premise, they recommend changing the current strategy mix from a focus on exclusion to shareholder engagement.
Posted ContentDOI
Climate Sin Stocks: Stock Price Reactions to Global Climate Strikes
TL;DR: The authors investigated the cross-section of European stock price reactions to the first Global Climate Strike on March 15, 2019 and found that the unanticipated success of this event caused a substantial stock price reaction on high-carbon intensity companies.
Journal ArticleDOI
Practical Vitality of Green Bonds and Economic Benefits
TL;DR: In this article, the authors explored green bonds' potential contribution to low-carbon transition and the corporate sector's benefit following the stock market reaction, and found that green bonds are cheaper than conventional bonds with a 1.93-2.24 per cent premium, consistent with prior studies in this topic.
Journal ArticleDOI
Developing an Impact-Focused Typology of Socially Responsible Fund Providers
Joel Diener,André Habisch +1 more
TL;DR: In this paper, the impact of socially responsible investments is investigated by analyzing how investor impact is implemented in the ethical investment policies of 45 providers of publicly traded, socially responsible funds, including ESG hermits, ESG ambassadors and ESG evangelists.
References
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Journal ArticleDOI
Socially responsible investments: Institutional aspects, performance, and investor behavior
TL;DR: In this paper, the authors provide a critical review of the literature on socially responsible investments (SRI) and conclude that existing studies hint but do not unequivocally demonstrate that SRI investors are willing to accept suboptimal financial performance to pursue social or ethical objectives.
Journal ArticleDOI
The Effect of Green Investment on Corporate Behavior
TL;DR: In this paper, the authors explore the effect of exclusionary ethical investing on corporate behavior in a risk-averse, equilibrium setting and show that it leads to polluting firms being held by fewer investors since green investors eschew polluting stocks.
Journal ArticleDOI
The effect of pro-environmental preferences on bond prices: Evidence from green bonds
TL;DR: In this paper, the authors used green bonds as an instrument to identify the effect of non-pecuniary motives, specifically pro-environmental preferences, on bond market prices.
Journal ArticleDOI
The Wages of Social Responsibility
Meir Statman,Denys Glushkov +1 more
TL;DR: This article analyzed returns during 1992-2007 of stocks rated on social responsibility by KLD and found that this tilt gave socially responsible investors a return advantage relative to conventional investors, but the return advantage of tilts toward stocks of companies with high social responsibility scores is largely offset by the return disadvantage that comes from the exclusion of stocks of'shunned' companies.
Journal ArticleDOI
Disagreement, Tastes, and Asset Prices
TL;DR: The authors provide a simple framework for studying how disagreement and tastes for assets as consumption goods can affect asset prices, and propose a model to estimate the probability distributions of future payoffs on assets.