Assessing the Relationship between ESG Ratings, Green Bond Issuances, and Firm Financing Practices
Presentation Type
Poster
Faculty Advisor
Pankaj Lal
Access Type
Event
Start Date
26-4-2024 9:45 AM
End Date
26-4-2024 10:45 AM
Description
Environmental, Social, and Governance (ESG) factors have gained significant attention in industry as investors increasingly prioritize sustainability and responsible investing practices. This study explores the relationship between ESG ratings and the issuance of green bonds, which are financial instruments specifically designed to fund environmentally friendly projects. By analyzing historical ESG ratings data and green bond issuance information from databases such as Bloomberg, this study aims to investigate the relationship between companies’ ESG ratings and their investments and/or financing decisions using green bond issuances as the main indicator. The research will determine if high ESG-rated firms are more likely to issue green bonds and if changes in ESG ratings over time have been reflected in the green bond issuing behavior of firms. The findings from this study are expected to provide insights on the alignment of ESG ratings and practices and green financing behaviors. It would be revelatory of firms’ sustainable finance strategies and potentially uncover instances of greenwashing, and other green malpractices in various industries across the USA. Ultimately, this research contributes to the understanding of the impact of ESG considerations on financial decision-making and the promotion of sustainable investment practices in the market. It will also inform regulators, future investors, environmentalists, and the public on the progress corporations are making in greening their businesses.
Assessing the Relationship between ESG Ratings, Green Bond Issuances, and Firm Financing Practices
Environmental, Social, and Governance (ESG) factors have gained significant attention in industry as investors increasingly prioritize sustainability and responsible investing practices. This study explores the relationship between ESG ratings and the issuance of green bonds, which are financial instruments specifically designed to fund environmentally friendly projects. By analyzing historical ESG ratings data and green bond issuance information from databases such as Bloomberg, this study aims to investigate the relationship between companies’ ESG ratings and their investments and/or financing decisions using green bond issuances as the main indicator. The research will determine if high ESG-rated firms are more likely to issue green bonds and if changes in ESG ratings over time have been reflected in the green bond issuing behavior of firms. The findings from this study are expected to provide insights on the alignment of ESG ratings and practices and green financing behaviors. It would be revelatory of firms’ sustainable finance strategies and potentially uncover instances of greenwashing, and other green malpractices in various industries across the USA. Ultimately, this research contributes to the understanding of the impact of ESG considerations on financial decision-making and the promotion of sustainable investment practices in the market. It will also inform regulators, future investors, environmentalists, and the public on the progress corporations are making in greening their businesses.