Abstract
In the green bond market, bond issuers can obtain various types of external reviews to validate their green claims. This paper examines the impact of external reviews in the form of verification, second party opinion (SPO), and green bond rating on the yield spread between a green bond and a paired conventional bond in the secondary green bond market. We perform coarsened exact matching, followed by regression analysis. The results of our analysis show that external reviews are effective signaling tools for issuers in the financial industry, and an SPO most effectively signals the credibility and quality of greenness information.
| Original language | English |
|---|---|
| Article number | 102306 |
| Journal | Finance Research Letters |
| Volume | 46 |
| Early online date | 2021 Jul 10 |
| DOIs | |
| Publication status | Published - 2022 |
Subject classification (UKÄ)
- Economics
Free keywords
- Bond yield
- External review
- Green bond
- Information asymmetry