Determinants of Sustainable Bond Yield among IDX-Listed Companies
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 07
Abstract
This study analyzes the development of sustainable bonds among IDX-listed companies in the post-Covid period of 2022 and identifies the factors influencing sustainable bond yields. The research observes 749 sustainable bonds issued by 93 IDX-listed companies. Multiple regression analysis is employed to explore the relationship between the bond yield as the dependent variable and sustainability factors—Number of Company-Supported SDGs, ESG Risk Ratings, CSR Funds, and GHG Emissions—as independent variables, along with control variables including three bond characteristics (Modified Duration, Issuance Size, Term to Maturity) and eight company characteristics (Board of Commissioners and Directors Diversity, Company Size and Age, ROA, Current Ratio, Industry, State-owned Enterprise status). The findings reveal positive correlations between the Number of Company-Supported SDGs and ESG Risk Ratings with bond yields, while CSR Funds and GHG Emissions show negative correlations with bond yields, indicating complex relationships between sustainability performance and sustainable bond yields. The study results suggest strategic recommendations for companies, investors, policymakers and regulatory bodies, as well as educational institutions to enhance the effectiveness and appeal of sustainable bonds in Indonesia.
Authors and Affiliations
Angelia Diandra Andi, Yunieta Anny Nainggolan,
Keywords
Related Articles
- EP ID EP740568
- DOI 10.47191/ijcsrr/V7-i7-55
- Views 62
- Downloads 0
Translation of Outdoor Signs in Nusa Dua Beach Area
This research was conducted to have a closer look at Linguistic Landscape in one of coastal areas of Bali, Indonesia. It specifically conducted with the aim of analyzing the translation of outdoor signs, in the form of n...
Factors associated with the Indonesian workforce’ Pneumonia Vaccination Intention: A Convergent Parallel Study
Pneumonia is part of Acute Respiratory Infections (ARI) that has high disease burden not only in the infants but also among Indonesian adult workforce. Following data from Indonesia medical trend by marsh mercer in 2023,...
Comparative Analysis of Machine Learning Algorithms for Used Car Price Prediction
After 2021, over 90 million passenger automobiles were produced, marking a significant increase in auto production. This growth has led to a flourishing used car market, which has become a highly lucrative sector. One of...
Development of Ibu Kota Nusantara: The Threat of Mechanical Solidarity to Indigenous Communities
The development of the Ibu Kota Nusantara gave rise to the degradation of mechanical solidarity in indigenous communities. This article aims to examine the threat of mechanical solidarity that occurs in indigenous commun...
Endonasal Rhinoplasty: Nasal Remodeling Without Visible Scars. A Case Report
Endonasal rhinoplasty, also known as closed rhinoplasty, is a surgical procedure used to modify the nasal structure for aesthetic or functional purposes without leaving visible scars. Its main advantage is achieving natu...