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This thesis examines the stock market reaction to the announcement of green bond issuance using a global sample of green bonds. This study uses a sample of 89 certified green bond from first time non-financial issuers. Five out of six cumulative abnormal returns or CAR values are found to be negative and insignificant ranging from 0.03% to -3.17% for the event windows of [-5, 5] and [-20, 20] respectively. These results suggest that shareholders regard this type of financing as value reducing and thus have a negative effect on the issuers financial performance. According to regression analysis, Tobins Q ratio as a firm-level characteristic is found to be significantly positive related to the CARs. While ESG score and ‘E’ or environmental score is found to have an insignificant and negligible effect. Our findings show that investors react similarly to the issuance of green bonds as they do to conventional bonds. These results imply that green bonds issuance transmit negative information about the companies issuing them.