Naslov (eng)

DOES TRANSPARENCY PAY OFF FOR GREEN BONDS’ ISSUERS? EVIDENCE FROM EU STATE AGENCIES’ GREEN BONDS

Autor

Kovačević, Vlado
Janković, Irena
Ljumović, Isidora Lj.
Vasić, Vladimir

Opis (eng)

A B S T R A C T This paper investigates the impact of transparent allocation of proceeds on green bonds’ yields, providing insights to green bonds’ issuers for optimizing their financing terms. Using data from the EU state agencies’ green bond market, we applied a Prais-Winsten regression model with correlated panels corrected standard errors and common AR(1) to estimate the relationship between green bonds’ yields and various factors, including the transparency of proceeds. Transparent allocation of proceeds has a negative effect on green bonds’ yields, confirming that investors require lower returns when they are well-informed about a bond’s environmental goals. Additionally, higher credit ratings, and shorter remaining maturity are associated with lower green bonds’ yields. Transparent use of proceeds significantly influences green bonds’ yields, demonstrating that specifying the use of bond proceeds for environmentally friendly projects can lead to more favorable financing terms. Future research direction should provide additional classification of the green bonds’ transparency.

Jezik

engleski

Datum

2023

Licenca

Ovo delo je licencirano pod uslovima licence
Creative Commons CC BY-SA 4.0 - Creative Commons Autorstvo - Deliti pod istim uslovima 4.0 International License.

http://creativecommons.org/licenses/by-sa/4.0/legalcode

Predmet

Keywords: green bonds, transparency, bond yield, EU state agencies, use of proceeds

Deo kolekcije (1)

o:28218

Ekonomski fakultet