This thesis uniquely contributes to understanding greenness demand, the driving forces behind
higher demand, and green bond (GB) issuers' motivations for voluntary impact reporting. The
novelty of this research lies in its potential to provide valuable insights for green bond issuers,
helping them make informed decisions and improve their practices.
In our first empirical investigation, I present novel findings on the unique greenness
characteristics of GB issuance and their role in explaining the cross-sectional variations of
corporate bond demand. Leveraging unique information on the orderbook size of green and
non-green bonds issued globally from 2013 to 2022, I find that, on average, the demand for
corporate GB is about 35 to 44% higher than comparable non-GB.
In the second empirical investigation, I show that ex-ante better environmental
performance (lower CO2 and higher investments in green innovations) and lower
environmental, social and governance (ESG) risk incidents explain the variations in the demand
for GB at the firm level. These findings provide valuable insights and also serve as a practical
guide for existing and future GB issuers, helping them make informed decisions and improve
their practices as required. By understanding the factors that drive demand for GB, issuers can
better tailor their offerings to meet market needs and contribute to environmental sustainability.
In the third empirical investigation, I use hand-collected worldwide data to assess
GB's impact reporting practices and issuers' motivation to publicly release impact reports
(IR). GB’s impact reporting is a voluntary decision, and it is a costly signal that firms with
better environmental performance and higher ecological risk have a higher propensity to
publish to showcase their environmental credibility.
This study aims to significantly enrich the existing literature by providing a
comprehensive understanding of the multifaceted role of GBs IR in signalling environmental
commitment and legitimacy gain. It explains the rationale of voluntary disclosure, signalling,
and legitimacy as the firms’ primary motivation for impact reporting and external validation,
ensuring concerned stakeholders are well-informed.
JEL classifications: D82, G14, G18, G32, M14, Q56
Keywords: Green Bonds, Green Characteristics of Green Bonds, Signaling Theory, Green
Innovations, ESG Risk Incidents, Impact Reporting, Voluntary Disclosure, Legitimacy,
External Validation
| Date of Award | 2 Jul 2025 |
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| Original language | English |
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| Awarding Institution | - University Of Strathclyde
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| Sponsors | University of Strathclyde |
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| Supervisor | Chandra Thapa (Supervisor) & Andrew Marshall (Supervisor) |
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