Scandinavian Working Papers in Economics
UiS Working Papers in Economics and Finance,
University of Stavanger
No 2024/1: Is investment capital cheaper for green firms? Evidence from equity listings at Euronext - Oslo
Erika Berle (), Kjell Jørgensen () and Bernt Arne Ødegaard ()
Additional contact information
Erika Berle: UiS , Postal: University of Stavanger
Kjell Jørgensen: BI, Postal: BI Business School, , Oslo, Norway
Bernt Arne Ødegaard: University of Stavanger, Postal: University of Stavanger, NO-4036 Stavanger, Norway
Abstract: We investigate whether the sustainability profile of a firm affects the terms at which the firm list on a stock market. Given the evidence that sustainable firms have a lower cost of capital, we expect this to also be reflected in the issue terms at an IPO. The laboratory for our investigation is stock listings (IPOs) at Euronext Oslo. We find that firms which emphasize environmental issues (ESG) in their prospectus have lower implied cost of capital. We find no link between the degree of underpricing and ESG issues. We also provide evidence on recent changes in the IPO landscape, where pure listings are becoming more common, and stock exchanges introduce tiered markets that attract younger and smaller companies.
Keywords: IPO; Cost of Capital; Underpricing; ESG; Euronext Oslo
Language: English
37 pages, October 12, 2024
Full text files
uis_wps_2024_01_berle_jorgensen_odegaard.pdfFull text
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