Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective

This paper shows that brand reputation alone may not be sufficient to help firms successfully issue green bonds and that they may need superior corporate social responsibility performance in the form of high ESG (Environmental, Social, and Governance) scores to unlock the full potential of their bra...

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Main Authors: Cheng, Louis TW, Sharma, Piyush, Broadstock, David
Format: Journal Article
Published: Wiley-Blackwell 2022
Online Access:http://hdl.handle.net/20.500.11937/88679
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author Cheng, Louis TW
Sharma, Piyush
Broadstock, David
author_facet Cheng, Louis TW
Sharma, Piyush
Broadstock, David
author_sort Cheng, Louis TW
building Curtin Institutional Repository
collection Online Access
description This paper shows that brand reputation alone may not be sufficient to help firms successfully issue green bonds and that they may need superior corporate social responsibility performance in the form of high ESG (Environmental, Social, and Governance) scores to unlock the full potential of their brand reputation. Using a sample of 338 international green bond issues across 108 unique firms, we found significant positive effects of ESG disclosure score and its interaction brand reputation on the issuance of green bonds while controlling for other variables, such as fixed effects of industry, region, and time. We also show that it is the S (Social) component of ESG and the interactions of its E (Environmental) and G (Governance) components with brand reputation which drive successful green bond issuance. Besides extending the current research on the impact of brand reputation and ESG on green bonds, these results also have important managerial implications for analysts, fund managers, and firms planning to raise green capital.
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publishDate 2022
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spelling curtin-20.500.11937-886792024-06-18T00:05:05Z Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective Cheng, Louis TW Sharma, Piyush Broadstock, David This paper shows that brand reputation alone may not be sufficient to help firms successfully issue green bonds and that they may need superior corporate social responsibility performance in the form of high ESG (Environmental, Social, and Governance) scores to unlock the full potential of their brand reputation. Using a sample of 338 international green bond issues across 108 unique firms, we found significant positive effects of ESG disclosure score and its interaction brand reputation on the issuance of green bonds while controlling for other variables, such as fixed effects of industry, region, and time. We also show that it is the S (Social) component of ESG and the interactions of its E (Environmental) and G (Governance) components with brand reputation which drive successful green bond issuance. Besides extending the current research on the impact of brand reputation and ESG on green bonds, these results also have important managerial implications for analysts, fund managers, and firms planning to raise green capital. 2022 Journal Article http://hdl.handle.net/20.500.11937/88679 10.1002/bse.3161 Wiley-Blackwell fulltext
spellingShingle Cheng, Louis TW
Sharma, Piyush
Broadstock, David
Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective
title Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective
title_full Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective
title_fullStr Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective
title_full_unstemmed Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective
title_short Interactive effects of brand reputation and ESG on green bonds success: A sustainable investment perspective
title_sort interactive effects of brand reputation and esg on green bonds success: a sustainable investment perspective
url http://hdl.handle.net/20.500.11937/88679