The Impact of the Novel Coronavirus Pneumonia Epidemic on the Green Bond Market: A Perspective on Yield and Issuance Size

DOI

10.2991/978-94-6463-506-5_30How to use a DOI?

Keywords

Green bonds; COVID-19; Credit spread; Issuance size

Abstract

This study aims to empirically analyze the impact of COVID-19 on credit spreads and issue size of corporate green bonds and explores the role of factors such as bond type, issue duration and issue timing. The study empirically analyzed the COVID-19 epidemic using the least squares (OLS) method, and conducted multicollinearity and heteroskedasticity tests using the VIF test, the White test, and the Robust model, and enhanced the explanatory power of the model by introducing a dummy variable (bond category). It is found that COVID-19 significantly reduces the issuance cost of green bonds. Moreover, the issuance size of green bonds decreased after COVID-19, but this trend is no longer significant after controlling for bond category. It indicates that different types of green bonds are affected by the epidemic to different degrees. In addition, longer issuance maturities are associated with larger issuance sizes. Moreover, large-scale issuance helps to reduce credit spreads. This study reveals the complex impact of COVID-19 on the green bond market and provides empirical evidence for the development of issuance strategies for green financial products.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yujing Tang
PY  - 2024
DA  - 2024/09/02
TI  - The Impact of the Novel Coronavirus Pneumonia Epidemic on the Green Bond Market: A Perspective on Yield and Issuance Size
BT  - Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
PB  - Atlantis Press
SP  - 265
EP  - 279
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-506-5_30
DO  - 10.2991/978-94-6463-506-5_30
ID  - Tang2024
ER  -