Investors in Green Bonds

Event Date: 8 March 2023

Speaker: Dr Moqi Groen-Xu, Queen Mary University, London

Time: 2pm 

Venue: CW310


Using data on the universe of holdings in bonds traded in Norway 2010-20, we describe the characteristics of real-world green investors. We do so by comparing investors of Norwegian green bonds to those of similar non-green bonds by the same issuers. Although green bonds only constitute a small fraction of portfolios, their investors exhibit a distinct investment strategy. Theory describes green preferences as a trade-off with financial preferences, where the presence of green preferences shields investors, allowing them to take on more financial risk. Consistent with this prediction, we find that green investors hold riskier portfolios with more defaults. They invest in smaller, but more profitable issuers with higher financial leverage. We also provide evidence that green investors hedge their non-financial preferences, which supports a consequentialist rather than a warm-glow motive of investment.

Published: 7 March 2023

Contact details

 Undergraduate admissions
 +44 (0)141 548 4114 

 Postgraduate admissions
 +44(0)141 553 6118 / 6119


Strathclyde Business School
University of Strathclyde
199 Cathedral Street
G4 0QU

Triple accredited

AACSB, AMBA and Equis logos
PRME logo