Flammer (2018)

Flammer, Caroline. “Corporate Green Bonds.” Working paper (Boston University), 2018.

From the author’s abstract: “I document that the issuance of corporate green bonds has become more prevalent over time, particularly in industries where the natural environment is financially material. I further document that green bonds yield i) positive announcement returns, ii) improvements in long-term value and operating performance, iii) improvements in environmental performance, iv) increases in green innovations, and v) an increase in ownership by long-term and green investors. Overall, these results indicate that green bonds are effective—companies invest the proceeds in projects that improve the company’s environmental footprint and contribute to long-term value creation—and help attract an investor clientele that is sensitive to the environment.”

Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3125518