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Green bonds’ reputation effect and its impact on the financing costs of the real estate sector
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE).ORCID iD: 0000-0002-8999-8078
Jönköping University, Jönköping International Business School, JIBS, Economics. DIW Berlin.ORCID iD: 0000-0003-3879-7361
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE). Linnaeus University, Sweden.ORCID iD: 0000-0001-5776-9396
2022 (English)Report (Other academic)
Sustainable development
Sustainable Development
Abstract [en]

This paper explores the effect of a firm's reputation of being a green bond issuer on its financing costs. Using a sample of 73 listed Swedish real estate companies issuing in total about 1500 bonds over the period from 2011 till 2021, differencein- difference analyses and instrumental variable estimations are applied to identify the causal impact of frequent green vis-à-vis frequent non-green bond issuing on a firm's cost of capital and credit rating. The paper argues that it is repetitive issuance which lowers a firm's cost of capital, while the effects from first or one-time green bond issuance is the opposite. In line with the reputation capital hypothesis, issuing green bonds even lowers the firm's cost of equity capital, while issuing non-green bonds has no effect on the cost of equity capital.

Place, publisher, year, edition, pages
Global Labor Organization (GLO) , 2022. , p. 25
Series
GLO Discussion Paper Series ; 1182
Keywords [en]
bond issuance, green debt, reputation capital, sustainability, ESG
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-58903OAI: oai:DiVA.org:hj-58903DiVA, id: diva2:1711155
Funder
EU, Horizon 2020, 857831Available from: 2022-11-16 Created: 2022-11-16 Last updated: 2023-02-20Bibliographically approved
In thesis
1. Green Finance in Real Estate, Housing Price Volatility and Rental Swaps
Open this publication in new window or tab >>Green Finance in Real Estate, Housing Price Volatility and Rental Swaps
2022 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of four papers that explore several aspects of the housing market in Sweden: financing of the housing construction sector, price volatility patterns of apartment and house segments and the role of the swap rental market in access to housing and household mobility.

The first paper explores the effect of a firm’s reputation of being a green bond issuer on its financing costs. Results show that repeated green bond issuance reduces the real estate firm’s cost of capital and cost of equity and that past green bond issuance is positively related to present green bond issuance.

The second paper empirically investigates the differences in idiosyncratic price volatility patterns between apartment and house segments at transaction level, using new spatial-temporal form of garch model. Results show that the segment of apartments shows stronger mean-reversion and auto-correlation, in contrast to houses. Volatility effects increase with wider geographical distances between observations.

The third paper investigates the effect of rental swaps on the waiting time of households queuing for permanent tenancy in rental market. Numerical comparative statics from a calibrated search & match model show that active swap market, increases waiting times for less than one year, in average.

The final paper in the thesis empirically investigates the household propensity to swap and the effects of the rental swap market on the horizontal and vertical mobility of households. The results show that the swap market increases mobility of locally bounded short-distance movers and helps to make a slight neighbourhood upgrade.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School, 2022. p. 51
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 150
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-58907 (URN)978-91-7914-013-7 (ISBN)978-91-7914-016-8 (ISBN)
Public defence
2022-12-09, B1014, Jönköping International Business School, Jönköping, 10:00 (English)
Opponent
Supervisors
Available from: 2022-11-16 Created: 2022-11-16 Last updated: 2023-02-20Bibliographically approved

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Petreski, AleksandarSchäfer, DorotheaStephan, Andreas

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