Empirically Analyzing Market Reactions to Green Bond Issuances and Green Bond Disclosures of European Banks and Insurers

Kraus A (2025)


Publication Language: English

Publication Type: Journal article

Publication year: 2025

Journal

Book Volume: 114

Pages Range: 115-156

Journal Issue: 1

DOI: 10.3790/zverswiss.2025.1456805

Abstract

This paper empirically analyzes market reactions to first-time issuances of green bonds and first-time disclosures of green bond frameworks of 45 large, listed European banks and insurers with an event study. Covering recent regulatory developments of the European Green Bond Standard, we investigate how the market reacts to the issuance of green bonds and the disclosure of green bond frameworks from 2015 to 2022. It will also be examined which key financial figures, green bond-, and framework-related characteristics influence market reactions as measured by cumulative abnormal returns. We find that market reactions are not significant due to offsetting positive and negative effects. However, statistically significant cumulative abnormal returns can be observed in absolute terms. Finally, we identify a firm’s size, leverage, and the offered coupon (text length and eligible green projects) as significant influencing factors for positive and negative market reactions to first-time green bond issuances (disclosures of green bond frameworks).

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How to cite

APA:

Kraus, A. (2025). Empirically Analyzing Market Reactions to Green Bond Issuances and Green Bond Disclosures of European Banks and Insurers. Zeitschrift für die gesamte Versicherungswissenschaft, 114(1), 115-156. https://doi.org/10.3790/zverswiss.2025.1456805

MLA:

Kraus, Anna. "Empirically Analyzing Market Reactions to Green Bond Issuances and Green Bond Disclosures of European Banks and Insurers." Zeitschrift für die gesamte Versicherungswissenschaft 114.1 (2025): 115-156.

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