Graduation Year
2025
Date of Submission
4-2025
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Eric Houghson
Terms of Use & License Information
Abstract
This study investigates whether the magnitude of "greenium", the yield discount on green bonds relative to comparable conventional bonds, impacts stock price reactions following first-time U.S. corporate green bond announcements. While the existence of greenium has been well-documented in bond markets, its influence on equity markets remains unclear. Using a dataset of 60 first-time U.S. corporate green bond issuers between 2015 and 2024, I conducted an event study to measure cumulative abnormal returns (CARs) around green bond announcements, and cross-sectional regressions to test the relationship between greenium and CARs.
Recommended Citation
Smithson, Gavin M., "The Impact of Greenium on Stock Price Reactions to First-Time U.S. Corporate Green Bond Announcements" (2025). CMC Senior Theses. 3989.
https://scholarship.claremont.edu/cmc_theses/3989
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
