How do stocks react to the announcement of green bond issuances?

  • Ádám György Orémusz (Student)

Student thesis: Master's Thesis


My thesis explores the impact of the announcement of green bond issuances on stock prices in Europe. The study is structured around two main research questions. First, I investigate the influence of the announcements of corporate green bond issuances on stock market movements compared to traditional bonds, and second, I identify firm and bond characteristics that affect the market response. The empirical analysis employs an event study, multivariate linear regression and difference-in-differences analysis. Results indicate a positive and significant cumulative abnormal return of 0.179% over a 21-day event window around the green bond announcements, conversely with a negative return of 0.391% for traditional bond announcements over an 11-day event window. I identify a positive significant relationship between the green characteristic of a bond and its cumulative abnormal return over a 21-day event window in a multivariate linear regression. In conducting a difference-in-difference analysis, I find no evidence of a positive relationship between CAR and green characteristic. Overall, my results suggest that investors value firms' commitment to green investments.
Date of Award26 Jan 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorZoe Venter (Supervisor)


  • Green finance
  • Green bonds
  • Corporate social responsibility
  • Event study
  • Abnormal return


  • Mestrado em Finanças

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