Work

How reactive is investment in US green bonds and ESG-eligible stocks in times of crisis? Exploring the COVID-19 crisis

Year: 2023

Type: article

Abstract: This study examines how green bonds and environmental, social and governance (ESG) stock market returns have reacted to the COVID-19 crisis in the US. Unlike the Standard and Poor's (S&P) 500 index, the response of green bonds and ESG markets to pandemic progress is nonlinear: A low (large) level of confirmed new cases of COVID-19 has a positive (negative) impact. Furthermore, the implemented containment policies (stringency measures and vaccination campaigns) are positively valued, but their simultaneous use is perceived by investors as a bad signal. Overall, our findings question the resilience of investments in green bonds and ESG markets.

Source: Finance research letters

DOI: 10.1016/j.frl.2023.103638

Authors: Javier Perote, José D. Vicente-Lorente, Jose Angel Zuñiga-Vicente

Institutions: Universidad de Salamanca, Universidad Rey Juan Carlos

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,930

Funders: Ministerio de Ciencia, Innovación y Universidades, Ministerio de Ciencia e Innovación, Universidad de Salamanca