TY - JOUR
T1 - The value of external reviews in the secondary green bond market
AU - Simeth, Nagihan
PY - 2022
Y1 - 2022
N2 - 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.
AB - 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.
KW - Bond yield
KW - External review
KW - Green bond
KW - Information asymmetry
UR - http://www.scopus.com/inward/record.url?scp=85110601684&partnerID=8YFLogxK
U2 - 10.1016/j.frl.2021.102306
DO - 10.1016/j.frl.2021.102306
M3 - Article
AN - SCOPUS:85110601684
SN - 1544-6123
VL - 46
JO - Finance Research Letters
JF - Finance Research Letters
M1 - 102306
ER -