The effects of “deep” uncertainty on the firms’ decisions to issue green bonds is studied in a structural model, where there is ambiguity about the effectiveness of the financed environmental projects and on the investors’ green perception in portfolio choices. Ambiguity affects default, the credit spreads and the so-called “greenium” and has an impact on investors’ optimal portfolio decisions. A survey on different modelling and interpretations of ambiguity is also presented.
Ambiguity in financing corporate mitigation policies
Agliardi, E
;
2021
Abstract
The effects of “deep” uncertainty on the firms’ decisions to issue green bonds is studied in a structural model, where there is ambiguity about the effectiveness of the financed environmental projects and on the investors’ green perception in portfolio choices. Ambiguity affects default, the credit spreads and the so-called “greenium” and has an impact on investors’ optimal portfolio decisions. A survey on different modelling and interpretations of ambiguity is also presented.File in questo prodotto:
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