Impact of Size, Future Earning, and growth to the Sustainability performance of US Sustainable Corporate Bonds

Sumit Kumar, Pankaj Kumar Baag

Abstract


One of the significant challenges towards the UNSDG (United National Sustainability Development Goals) is funding sustainable projects. Sustainable bonds are an essential financing instrument where the bond proceeds are used to finance or refinance an eligible sustainable project. This effort aims to analyze the sustainability commitment of US Corporate's sustainable bonds. We investigated the US corporate sustainable bonds SDG commitments to the "Firm size," "Future earning and growth potential," and the "Extent of institutional investors ownership." We found a positive relationship between sustainability commitment or score and "Future earning and growth potential."We discover no significant association between the sustainability commitment of sustainable corporate bond issuance in the United States and company size or ownership concentration. The critical implication of this research is to understand investment targets if the end goal is to factor in Sustainability in the investment strategy.

Keywords: Sustainable Bonds, UNSDG Goals, Stakeholder's theory, Sustainability, ESG.


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