How Do Stock Prices React to Green Bond Issuance Announcements?

We find a positive firm's stock price reaction to green bond issuance announcement. We explore the impact of bond market originated information on equity investors. We find that this stock price reaction grew after the Paris Agreement, suggesting a change of equity investor behavior after this agreement. We use a sample of 780 corporate bond issuance announcements in 18 countries between January 2013 and August 2018. We apply an event-study at each announcement date, we confirm our results with a regression and difference-in-differences analyses. These results suggest that the Paris Agreement had an impact on equity investor firm value creation perception of green bonds