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How does investor attention influence the green bond market?

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  • Pham, Linh
  • Luu Duc Huynh, Toan

Abstract

This paper is the first empirical study of the link between investor attention and the green bond market performance. Using daily data of investor attention and green bond indexes, we find that investor attention can influence green bond returns and volatility, however, this relationship is time varying. Our results are relevant for investors as they shed light into the newly developed and fast growing green bond market. Our findings also emphasize the importance of appropriate information and attention for directing financial flows towards sustainable investment.

Suggested Citation

  • Pham, Linh & Luu Duc Huynh, Toan, 2020. "How does investor attention influence the green bond market?," Finance Research Letters, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319314904
    DOI: 10.1016/j.frl.2020.101533
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    References listed on IDEAS

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    More about this item

    Keywords

    Green bond; Investor attention; Sustainable finance; Climate finance;
    All these keywords.

    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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