Publication Type
Conference Paper
Version
submittedVersion
Publication Date
7-2024
Abstract
We examine green bond premiums in the primary and secondary bond markets in the Asia-Pacific and Europe. In both regions, green bond yields are significantly lower than those of conventional bonds in the primary market, indicating that a green bond premium exists. Asia-Pacific investors in the secondary market are more willing to accept lower yields than European ones. We find that green bonds have a lower risk than conventional bonds. Investment grade issuers, financial sector issuers, and local currency green bonds are associated with lower yields due to their stronger reputation, higher credit ratings, and absence of foreign exchange risk.
Keywords
Green Bond Premium, Sustainability, Pro-environmental Preferences, Propensity Score Matching, Coarsened Exact Matching
Discipline
Asian Studies | Eastern European Studies | Finance and Financial Management
Research Areas
Finance
Areas of Excellence
Growth in Asia
Publication
Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Auckland, New Zealand, 2024 June 30 - July 2
Publisher
The Eurographics Association
City or Country
New Zealand
Citation
WONGAREE, Parath; CHIRAPHOL, Chiyachantana N.; DING, Kuan Yong David; and SIWASARIT, Wasin.
Green bond premiums in the Asia-Pacific and European markets. (2024). Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Auckland, New Zealand, 2024 June 30 - July 2.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7708
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Included in
Asian Studies Commons, Eastern European Studies Commons, Finance and Financial Management Commons