The grass is greener on the other side: Comparison of green versus brown corporate bonds

2022-11-01
Ayaydın Hacıömeroğlu, Hande
Danışoğlu, Seza
Güner, Zehra Nuray
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This study compares the yield-to-maturities on green versus brown corporate bonds on their issue dates, after controlling for the market, firm, bond, and currency characteristics of the bonds. Our analyses show that if these characteristics are not addressed, it is possible to find support for the existence of a “greenium” at a magnitude of about 25 basis points. However, when all yield factors are included in the models, the results change and indicate that issuers do not necessarily enjoy any cost advantage when they issue green bonds, instead of brown bonds. Failure to consider these interactions might lead to biased findings.
Blended-value investing, Green bonds, Greenium, Impact investing
https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85138800943&origin=inward
https://hdl.handle.net/11511/101725
Borsa Istanbul Review
Department of Business Administration, Article

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Citation Formats
H. Ayaydın Hacıömeroğlu, S. Danışoğlu, and Z. N. Güner, “The grass is greener on the other side: Comparison of green versus brown corporate bonds,” Borsa Istanbul Review, vol. 22, no. 6, pp. 1182–1194, 2022, Accessed: 00, 2023. [Online]. Available: https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85138800943&origin=inward.
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