Berrada, Tony; Engelhardt, Leonie; Gibson, Rajna; … - 2022
We develop a conceptual framework to understand the incentive structure and pricing mechanisms of Sustainability-Linked-Bonds … overpriced bonds, the stock price reaction at issuance is significantly positive, which is consistent with a wealth transfer from … bond - to shareholders Finally, we document a significant relationship between the mispricing measure and the issuing firms …