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Full-Text Articles in Physical Sciences and Mathematics
Is Carbon Risk Priced In The Cross-Section Of Corporate Bond Returns?, Tinghua Duan, Frank Weikai Li, Quan Wen
Is Carbon Risk Priced In The Cross-Section Of Corporate Bond Returns?, Tinghua Duan, Frank Weikai Li, Quan Wen
Research Collection Lee Kong Chian School Of Business
This paper examines the pricing of a firm's carbon risk, measured by its carbon emissions intensity, in the cross-section of corporate bond returns. Contrary to the "carbon risk premium" hypothesis, we find bonds of firms with higher carbon emissions intensity earn significantly lower returns. This effect cannot be explained by a comprehensive list of bond characteristics and exposure to known risk factors. Investigating sources of the low carbon premium, we find the underperformance of bonds issued by carbon-intensive firms cannot be fully explained by divestment from institutional investors. Instead, our evidence is most consistent with investor underreaction to carbon risk, …
Is Carbon Risk Priced In The Cross Section Of Corporate Bond Returns?, Tinghua Duan, Frank Weikai Li, Quan Wen
Is Carbon Risk Priced In The Cross Section Of Corporate Bond Returns?, Tinghua Duan, Frank Weikai Li, Quan Wen
Research Collection Lee Kong Chian School Of Business
This article examines the pricing of a firm’s carbon risk in the corporate bond market. Contrary to the “carbon risk premium” hypothesis, bonds of more carbon-intensive firms earn significantly lower returns. This effect cannot be explained by a comprehensive list of bond characteristics and exposure to known risk factors. Investigating sources of the low carbon alpha, we find the underperformance of bonds issued by carbon-intensive firms cannot be fully explained by divestment from institutional investors. Instead, our evidence is most consistent with investor underreaction to the predictability of carbon intensity for firm cash-flow news, creditworthiness, and environmental incidents.
Digital Sustainability And Its Implications For Finance And Climate Change, Gerard George, Simon J.D. Schillebeeckx
Digital Sustainability And Its Implications For Finance And Climate Change, Gerard George, Simon J.D. Schillebeeckx
Research Collection Lee Kong Chian School Of Business
As the pandemic forced the entire world to a virtual standstill, nature revived a little. The US emitted 10.3% less CO2 in 2020 than in 2019 and other regions similarly experienced emission declines. Depending on the source, global carbon emissions were down between 4 and 8% in 2020.2 Consumers globally have expressed more concern about sustainability, an observation confirmed by large survey research by Accenture, Kantar, Boston Consulting Group (BCG), and Ipsos.3 In its latest Emissions Gap Report4 , the UN Environment Programme (UNEP) explicitly connected the pandemic to climate change, nature loss, and pollution. Besides the acceleration of business …
Tackling Regional Climate Change Impacts And Food Security Issues: A Critical Analysis Across Asean, Pif, And Saarc, Md. Saidul Islam, Edson Kieu
Tackling Regional Climate Change Impacts And Food Security Issues: A Critical Analysis Across Asean, Pif, And Saarc, Md. Saidul Islam, Edson Kieu
Research Collection Lee Kong Chian School Of Business
Climate change and food security issues are multi-faceted and transcend across national boundaries. Therefore, this paper begins with the premise that regional organizations are optimally positioned to address climate change and food security issues while actively engaging global partners to slow down or reverse current trajectories. However, the potential of regional organizations to play a central role in mitigating these vital concerns has not been realized. In this paper, we focus on three regional organizations—the Association of Southeast Asian Nations (ASEAN), the Pacific Islands Forum (PIF), and the South Asian Association for Regional Cooperation (SAARC) and set out to investigate …