Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries

Green bonds offer investors the opportunity to align their investments with their values and contribute to positive social and environmental impacts. These bonds are a promising tool for channelling investment towards projects that are environmentally friendly and promote the transition to a low-car...

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Published in:International Journal of Energy Economics and Policy
Main Author: Aini A.N.; Sukmadilaga C.; Ghani E.K.
Format: Article
Language:English
Published: Econjournals 2023
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85176781309&doi=10.32479%2fijeep.15162&partnerID=40&md5=f2b42690e914b26ac019120f7a8857f4
id 2-s2.0-85176781309
spelling 2-s2.0-85176781309
Aini A.N.; Sukmadilaga C.; Ghani E.K.
Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
2023
International Journal of Energy Economics and Policy
13
6
10.32479/ijeep.15162
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85176781309&doi=10.32479%2fijeep.15162&partnerID=40&md5=f2b42690e914b26ac019120f7a8857f4
Green bonds offer investors the opportunity to align their investments with their values and contribute to positive social and environmental impacts. These bonds are a promising tool for channelling investment towards projects that are environmentally friendly and promote the transition to a low-carbon and sustainable economy. Arguably, they play an important role in the fight against climate change and the achievement of sustainable development goals. However, there are not many studies that have examined the impact of green bond issuance on stock market reactions. This study aims to examine the effect of green bond issuance on investor attention and the stock market using route analysis and the SEM-PLS method, either directly or through the inclusion of investor attention as an intervening variable. This study performed content analysis on the annual reports of publicly listed companies in five ASEAN countries over a period of 5 years. This study demonstrates that investors’ interest in green bonds increases proportionally to their issuance. However, green bond issuance does not significantly influence stock market reactions. In addition, the issuance of green bonds has had no discernible effect on the stock market’s response as measured by investor attention. The findings in this study provide some insights on how green bond issuance can influence stock market reactions through investor attention. Investors can use these insights to make future investment decisions, particularly in ASEAN companies. © 2023, Econjournals. All rights reserved.
Econjournals
21464553
English
Article
All Open Access; Gold Open Access
author Aini A.N.; Sukmadilaga C.; Ghani E.K.
spellingShingle Aini A.N.; Sukmadilaga C.; Ghani E.K.
Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
author_facet Aini A.N.; Sukmadilaga C.; Ghani E.K.
author_sort Aini A.N.; Sukmadilaga C.; Ghani E.K.
title Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
title_short Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
title_full Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
title_fullStr Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
title_full_unstemmed Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
title_sort Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries
publishDate 2023
container_title International Journal of Energy Economics and Policy
container_volume 13
container_issue 6
doi_str_mv 10.32479/ijeep.15162
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85176781309&doi=10.32479%2fijeep.15162&partnerID=40&md5=f2b42690e914b26ac019120f7a8857f4
description Green bonds offer investors the opportunity to align their investments with their values and contribute to positive social and environmental impacts. These bonds are a promising tool for channelling investment towards projects that are environmentally friendly and promote the transition to a low-carbon and sustainable economy. Arguably, they play an important role in the fight against climate change and the achievement of sustainable development goals. However, there are not many studies that have examined the impact of green bond issuance on stock market reactions. This study aims to examine the effect of green bond issuance on investor attention and the stock market using route analysis and the SEM-PLS method, either directly or through the inclusion of investor attention as an intervening variable. This study performed content analysis on the annual reports of publicly listed companies in five ASEAN countries over a period of 5 years. This study demonstrates that investors’ interest in green bonds increases proportionally to their issuance. However, green bond issuance does not significantly influence stock market reactions. In addition, the issuance of green bonds has had no discernible effect on the stock market’s response as measured by investor attention. The findings in this study provide some insights on how green bond issuance can influence stock market reactions through investor attention. Investors can use these insights to make future investment decisions, particularly in ASEAN companies. © 2023, Econjournals. All rights reserved.
publisher Econjournals
issn 21464553
language English
format Article
accesstype All Open Access; Gold Open Access
record_format scopus
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