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Do green bond issuers suffer from financial constraints?

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  • Glavas, Dejan

Abstract

We find that green bond issuers are more financially constrained. We use three measures of financial constraint, which are the FCP index, the SA index, and the Altman’s Z score. We test the link between green bond issuance and financial constraints using difference in means, regression analyses and a matching procedure. We finally document that these constraints increase after the first green bond issuance.

Suggested Citation

  • Glavas, Dejan, 2022. "Do green bond issuers suffer from financial constraints?," SocArXiv n4mdy, Center for Open Science.
    • Handle: RePEc:osf:socarx:n4mdy
    DOI: 10.31219/osf.io/n4mdy
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    1. Zerbib, Olivier David, 2019. "The effect of pro-environmental preferences on bond prices: Evidence from green bonds," Journal of Banking & Finance, Elsevier, vol. 98(C), pages 39-60.
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    5. Schauer, Catharina & Elsas, Ralf & Breitkopf, Nikolas, 2019. "A new measure of financial constraints applicable to private and public firms," Journal of Banking & Finance, Elsevier, vol. 101(C), pages 270-295.
    6. Caggese, Andrea & Cuñat, Vicente & Metzger, Daniel, 2019. "Firing the wrong workers: Financing constraints and labor misallocation," Journal of Financial Economics, Elsevier, vol. 133(3), pages 589-607.
    7. Weihan Cui, 2020. "Is debt conservatism the solution to financial constraints? An empirical analysis of Japanese firms," Applied Economics, Taylor & Francis Journals, vol. 52(23), pages 2526-2543, May.
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    Cited by:

    1. ElBannan, Mona A. & Löffler, Gunter, 2024. "How effectively do green bonds help the environment?," Journal of Banking & Finance, Elsevier, vol. 158(C).

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