Erika Berle, Kjell Jørgensen and Bernt Arne Ødegaard

Jan 2024

We investigate price differences in the terms of equity capital linked to ESG properties. Do green firms get lower cost of capital? The laboratory for our investigation is new issues at Euronext Oslo. We find evidence of differences in underpricing associated with ESG. Firm prospectuses that scored higher on the ESG environmental content had less underpricing. On the other hand, firms in the fossil fuel industry, and with high CO2 emissions, had more underpricing.

Keywords: ESG; IPO; Euronext Oslo

JEL Codes: G10; G11; G20

Presenting paper

Summarizing paper