Corporate social responsibilities, sustainable investment, and the future of green bond market: evidence from renewable energy projects in Morocco.

Abstract

The study mainly focuses on identifying the links between corporate social responsibility disclosure activities and green bond investment performance utilizing GDP growth as a moderating variable in Morocco. The research is based on a unique technique combining a thorough literature review, market data analysis, and interviews with a vast spectrum of green bond market players. The data from 2015 to 2019 for the 450 Moroccan enterprises has been utilized to produce CSR and GDP growth rates based on a serial criterion. The data demonstrate that the more firms publicly disclose their CSR initiatives, and the better the financial outcomes. The relationship between CSR disclosure and green bond investment seems to be tempered by GDP considerably, while the effect of CSR on green bond investment Tobin's Q is dramatically lowered. As a consequence of the benefits that the business stands to get from CSR disclosure, legislators are moving in the direction of ensuring a long-term market. Overall, the issue of green bonds has a good influence on firms, may contribute to environmental development, encourages CSR and value creation, and helps to attract investors to some level. The research provided light on a strategy to measure CSR disclosure indices for emerging markets like Morocco. The results recommend that the business's management pay more attention to CSR disclosure activities owing to the positive advantage their firm may gain and suggest policymakers maintain a stable economic background for a sustainable market.