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https://doi.org/10.21256/zhaw-30473| Publication type: | Article in scientific journal |
| Type of review: | Peer review (publication) |
| Title: | Signaling sustainability : differential reaction of the stock market following the announcement of sustainability-linked bonds |
| Authors: | Affolter, Beat Ciarla, Elisa Meyer, Julia Sugandhita, Sugandhita |
| et. al: | No |
| DOI: | 10.1016/j.frl.2024.105261 10.21256/zhaw-30473 |
| Published in: | Finance Research Letters |
| Volume(Issue): | 63 |
| Issue: | 105261 |
| Issue Date: | 22-May-2024 |
| Publisher / Ed. Institution: | Elsevier |
| ISSN: | 1544-6123 |
| Language: | English |
| Subjects: | Sustainable finance; Sustainability-linked bond; Climate target; Event study |
| Subject (DDC): | 332.6: Investment |
| Abstract: | This paper explores the suitability of sustainability-linked bonds (SLBs) for signaling sustainability intentions by analyzing the market reaction following their announcement and issuance. We find no significant share price reaction for SLBs targeting greenhouse gas emission reduction objectives. The lack of significant market reaction also applies to SLB-independent emission-reduction announcements. In contrast, for other types of SLB goals, such as those linked to sustainability ratings, renewable energy, or energy efficiency, we observe a significant positive market reaction. We argue that climate transition activities of companies are already priced by the market, while other sustainability goals are positively received. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/30473 |
| Fulltext version: | Published version |
| License (according to publishing contract): | CC BY 4.0: Attribution 4.0 International |
| Departement: | School of Management and Law |
| Organisational Unit: | Institute for Financial Management (IFI) |
| Appears in collections: | Publikationen School of Management and Law |
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| 2024_Affolter-etal_Signaling-sustainability-stock-market-reaction.pdf | 684.77 kB | Adobe PDF |  View/Open |
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Affolter, B., Ciarla, E., Meyer, J., & Sugandhita, S. (2024). Signaling sustainability : differential reaction of the stock market following the announcement of sustainability-linked bonds. Finance Research Letters, 63(105261). https://doi.org/10.1016/j.frl.2024.105261
Affolter, B. et al. (2024) ‘Signaling sustainability : differential reaction of the stock market following the announcement of sustainability-linked bonds’, Finance Research Letters, 63(105261). Available at: https://doi.org/10.1016/j.frl.2024.105261.
B. Affolter, E. Ciarla, J. Meyer, and S. Sugandhita, “Signaling sustainability : differential reaction of the stock market following the announcement of sustainability-linked bonds,” Finance Research Letters, vol. 63, no. 105261, May 2024, doi: 10.1016/j.frl.2024.105261.
AFFOLTER, Beat, Elisa CIARLA, Julia MEYER und Sugandhita SUGANDHITA, 2024. Signaling sustainability : differential reaction of the stock market following the announcement of sustainability-linked bonds. Finance Research Letters. 22 Mai 2024. Bd. 63, Nr. 105261. DOI 10.1016/j.frl.2024.105261
Affolter, Beat, Elisa Ciarla, Julia Meyer, and Sugandhita Sugandhita. 2024. “Signaling Sustainability : Differential Reaction of the Stock Market Following the Announcement of Sustainability-Linked Bonds.” Finance Research Letters 63 (105261). https://doi.org/10.1016/j.frl.2024.105261.
Affolter, Beat, et al. “Signaling Sustainability : Differential Reaction of the Stock Market Following the Announcement of Sustainability-Linked Bonds.” Finance Research Letters, vol. 63, no. 105261, May 2024, https://doi.org/10.1016/j.frl.2024.105261.
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