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Impact of green bond policies on insurers: evidence from the European equity market

Author

Listed:
  • Petr Jakubik

    (European Insurance and Occupational Pensions Authority (EIOPA)
    Charles University)

  • Sibel Uguz

    (European Central Bank)

Abstract

This article empirically investigates whether the introduction of green bond policies by European insurance companies has a positive impact on their equity prices. To this end, we employ a sample of listed (re)insurers in Europe using monthly data for the 2012–2019 period. We use announcements, press releases and semi-annual or annual reports to determine when the insurance companies committed to a green investment, to the issuance of green bonds or to launching a green fund. Our empirical analysis did not confirm the positive effect of green policies. However, when investigating different types of green policies, our results suggest that market investors positively price the issuance of green bonds and launching green funds.

Suggested Citation

  • Petr Jakubik & Sibel Uguz, 2021. "Impact of green bond policies on insurers: evidence from the European equity market," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 45(2), pages 381-393, April.
    • Handle: RePEc:spr:jecfin:v:45:y:2021:i:2:d:10.1007_s12197-020-09534-4
    DOI: 10.1007/s12197-020-09534-4
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    8. Ilia Kuchin & Gennady Baranovskii & Yury Dranev & Alexander Chulok, 2019. "Does Green Bonds Placement Create Value For Firms?," HSE Working papers WP BRP 101/STI/2019, National Research University Higher School of Economics.
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    Cited by:

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    2. Akhtaruzzaman, Md & Banerjee, Ameet Kumar & Ghardallou, Wafa & Umar, Zaghum, 2022. "Is greenness an optimal hedge for sectoral stock indices?," Economic Modelling, Elsevier, vol. 117(C).
    3. Lin, Boqiang & Su, Tong, 2022. "Green bond vs conventional bond: Outline the rationale behind issuance choices in China," International Review of Financial Analysis, Elsevier, vol. 81(C).
    4. Amariei, Cosmina, 2020. "Asset Allocation in Europe: Reality vs. Expectations," ECMI Papers 27304, Centre for European Policy Studies.
    5. Chien-Liang Chiu & Paoyu Huang & Min-Yuh Day & Yensen Ni & Yuhsin Chen, 2024. "Mastery of “Monthly Effects”: Big Data Insights into Contrarian Strategies for DJI 30 and NDX 100 Stocks over a Two-Decade Period," Mathematics, MDPI, vol. 12(2), pages 1-22, January.
    6. Jiasheng Yu & Maojun Zhang & Ruoyu Liu & Guodong Wang, 2023. "Dynamic Effects of Climate Policy Uncertainty on Green Bond Volatility: An Empirical Investigation Based on TVP-VAR Models," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    7. Pham, Linh & Cepni, Oguzhan, 2022. "Extreme directional spillovers between investor attention and green bond markets," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 186-210.

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    More about this item

    Keywords

    European insurance companies; Green bonds; Green bond policies; impact on equity prices; Green investments; Issuance of green bonds; Launching a green fund;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics

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