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Green bonds' reputation effect and its impact on the financing costs of the real estate sector

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Bibliographic Details
Authors and Corporations: Petreski, Aleksandar (Author), Schäfer, Dorothea (Author), Stephan, Andreas (Author)
Other Authors: Schäfer, Dorothea 1957- [Author] • Stephan, Andreas 1968- [Author]
Type of Resource: E-Book
Language: English
published:
Berlin DIW Berlin, German Institute for Economic Research 2022
Series: Deutsches Institut für Wirtschaftsforschung: Discussion papers ; 2019
Subjects:
ESG
ESG
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
Description
Summary: This paper explores the effect of a firm's reputation of being a green bond issuer on its financing costs. Using a sample of 73 listed Swedish real estate companies issuing in total about 1500 bonds over the period from 2011 till 2021, differencein- difference analyses and instrumental variable estimations are applied to identify the causal impact of frequent green vis-à-vis frequent non-green bond issuing on a firm's cost of capital and credit rating. The paper argues that it is repetitive issuance which lowers a firm's cost of capital, while the effects from first or one-time green bond issuance is the opposite. In line with the reputation capital hypothesis, issuing green bonds even lowers the firm's cost of equity capital, while issuing non-green bonds has no effect on the cost of equity capital.
Physical Description: 1 Online-Ressource (circa 28 Seiten)