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Greenness ratings and green bond liquidity

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  • Dorfleitner, Gregor
  • Eckberg, Jens
  • Utz, Sebastian

Abstract

Using a global panel dataset of 3,496 green bonds and conducting regressions, we find a positive relationship between greenness ratings from second-party opinions (SPOs) and green bond liquidity. Green bonds from corporate and municipal issuers with a greenness rating show higher liquidity than green bonds without a greenness rating. For financial institutions and other public issuers besides municipalities, we find no effect of greenness ratings on green bond liquidity.

Suggested Citation

  • Dorfleitner, Gregor & Eckberg, Jens & Utz, Sebastian, 2023. "Greenness ratings and green bond liquidity," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002416
    DOI: 10.1016/j.frl.2023.103869
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