How to achieve higher greemiums? A comprehensive analysis of the green bond market = Küzdelem a zöld prémiumért : Egy átfogó elemzés a zöld kötvények piacáról

Absztrakt (kivonat)

The green bond market is an emerging segment of the global debt securities market, which has been attracting immense scientific interest in recent years. One of the most frequently discussed questions in the literature is whether these bonds receive premiums in the market. This study provides an in-depth analysis of the existing literature showing that green bond premiums are very heterogeneous and depend on numerous factors, however, their relationship with the issuers’ ESG scores is a relatively unexplored territory. Thus, an OLS regression model is developed in this paper, which aims to identify factors influencing market demand for green bonds, such as the ESG score of the issuer, rating of the bond, currency and sector. The results show that there is a negative relationship between premiums and ESG scores, and similarly, lower rated bonds receive higher premiums. These outcomes suggest that ESG scores and higher ratings inflate the additional reputational benefits of green labels, despite providing higher transparency in many cases. Currency does not have a significant effect in the sample, but it is indicated that bonds of government agencies and financial institutions are issued at higher premiums relative to other sectors.