Bond Pricing and Market Efficiency

Subject. The article addresses the green bond pricing as compared to bonds other than green ones. Objectives. The aims are to determine how the fact that a bond is identified as a green one, the issue amount, and the availability of third-party verification, influence the yield to maturity; to make recommendations on effective green bond pricing. Methods. The study employs econometric testing of hypotheses, using the multiple linear regression. The sample includes 318 green and 1695 conventional bonds. Results. Green bonds have a lower yield to maturity in comparison with conventional bonds. The yield to maturity of green bonds with third-party verification is lower, as contrasted with green bonds without verification. Conclusions. The next step in the green bond market development is creating a benchmark yield curve for sovereign green bonds, with parallel issuance of conventional, non-green bonds. The yield curve is crucial for effective bond pricing. Two yield curves, i.e. for green and non-green bonds, will enable investors to estimate the fair price on issuance, as well as to define, if there is a difference in pricing.

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Does Enhancing of the Competitiveness Influence on Foreign Direct Investments in Western Balkan Countries?

European Journal of Multidisciplinary Studies ◽

10.26417/ejms.v1i2.p164-173 ◽

2016 ◽

Vol 1 (2) ◽

pp. 164 ◽

Cited By ~ 1

Author(s):

Matea Zlatković

Keyword(s):

Market Efficiency ◽

Foreign Direct Investments ◽

Global Competitiveness ◽

Technological Readiness ◽

Regional Market ◽

National Competitiveness ◽

Good Market ◽

World Economic ◽

Global Competitiveness Index ◽

Per Capita

Foreign direct investments present a valuable source of national competitiveness as they have attributes of capital flows provide knowledge and technology transfer from one country to target country. In this paper are used variables defined by World Economic Forum which construct Global Competitiveness Index for assessing competitiveness of the country. The purpose of the research is to examine does the national competitiveness increase enhance the level of FDI flows in transition Western Balkan economies that are not yet full members of European Union. The findings claim that larger increase in FDI per capita stocks in majority analyzed countries would have if making infrastructure more competitiveness, accelerate their technological readiness and improve innovation while certain countries should work on health and primary education and higher education and training. According to the results, there is no correlation between FDI flows and macroeconomic environment, institutions, development of financial markets, good market efficiency, labor market efficiency and business sophistication. Applying benchmark method, it is established the most competitive WB country as benchmark value for other transition countries in its neighborhood for enhancing their competitiveness, specially in the regional market. Also, it is obtained what if analysis to detect potential rise of FDI per capita stocks as a consequence of potential changes in some competitiveness variables. It is also calculated the potential increase in FDI/capita due to similar changes in different competitiveness variables.

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Empirical Study on Semi-Strong Form Market Efficiency: Evidence from Colombo Stock Exchange

10.31357/fmscmst.2013.00226 ◽

2013 ◽

Author(s):

K.V.A. Shantha,

Keyword(s):

Empirical Study ◽

Market Efficiency ◽

Stock Exchange ◽

Strong Form

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Risk and Return of Retail Sukuk and Retail Bond in Indonesia Period 2008-2017 (Comparative Study)

AKSES: Jurnal Ekonomi dan Bisnis ◽

10.31942/akses.v15i1.3359 ◽

2020 ◽

Vol 15 (1) ◽

Author(s):

Rahma Yudi Astuti ◽

Asad Arsya Brilliant Fani

Keyword(s):

Standard Deviation ◽

Comparative Study ◽

Stock Exchange ◽

Secondary Data ◽

Bond Market ◽

Bond Pricing ◽

Risk And Return ◽

Underlying Asset ◽

The Real ◽

The World

Sukuk and Bonds has differences and similarities. Fundamental differences between sukuk and bonds are first, underlying asset in every sukuk issuance, concept of profit loss sharing and the use of Islamic contracts. Whereas conducted research in practice of differences between sukuk and bonds are still an on-going discussion. This study aims to add the evidence in the discussion regarding whether there is differences between sukuk and bonds in the world of practice, provide investment preferences as well as educating investors in choosing sukuk or bonds as a sustainable and smooth instrument. The method used is Mann Whitney U-Test to test whether there is a different between yield to maturity (return) and standard deviation (risk) of both instruments. Using secondary data of Retail Sukuk (SR) and Retail Bonds (ORI) period 2008-2017 obtained from Indonesia Stock Exchange, Indonesia Bond Market Directory and Indonesia Bond Pricing Agency. The result shows that there is no significance difference of retail sukuk return and risk with retail bonds in Indonesia. Besides retail bonds are show higher return than retail sukuk because of higher coupon and longest mature date. While, retail sukuk is more stable rather than bonds as it backed up by the real underlying asset. Keywords: Retail Sukuk (SR), Retail Bonds (ORI), Yield to Maturity

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