Online After Lunch Taskforce Meeting: The SDGs and sovereign bond spreads: investor implications
Netspar organizes this online After Lunch Taskforce Meeting for partners and employees of partners. Researchers will outline their latest retirement research and then receive feedback and answer questions. It is just another way we bring science, academics, and professional practice closer together.
In this online After Lunch Taskforce Meeting by Eline ten Bosch (Rotterdam School of Management) you will learn more about the relationship between a country’s performance on the Sustainable Development Goals (SDGs) and the sovereign bond spreads. Questions and input on this ongoing research are most welcome. This is a Dutch-speaking event.
This research is being conducted together with Mathijs van Dijk and Dirk Schoenmaker (both Rotterdam School of Management).
We study the relation between a country’s performance on the United Nations’ Sustainable Development Goals (SDGs) and its sovereign bond spread. Using a novel country-level SDG measure for a global sample of countries, we find a significantly negative relation between SDG performance and credit default swap (CDS) spreads, while controlling for traditional macroeconomic factors. This effect is stronger for longer maturities, in line with the notion that the SDGs represent long-term objectives. The results are most consistent with perceived default risk driving this relation, rather than investor preferences. In sum, our initial evidence suggests that investing in the SDGs provides governments with financial benefits besides ecological and social welfare.
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Location
Online (Microsoft Teams)
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This event is open to (employees of) Netspar Partners and fellows.
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