Going Green: Effect of green bond issuance on corporate debt financing costs

IF 3.8 3区经济学 Q1 BUSINESS, FINANCE

North American Journal of Economics and Finance Pub Date : 2024-10-11 DOI:10.1016/j.najef.2024.102299

Qingsong Ruan , Chengyu Li , Dayong Lv , Xiaokun Wei

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Abstract

This paper investigates the influence of green bond (GB) issuance on the credit spread of non-green bonds (NGBs) issued by the same firm. Based on Chinese bond market data from 2013 to 2021, our results show that GB issuers experience a decline in NGB credit spreads after issuing GBs, indicating that “going green” can lower corporate debt financing costs. This beneficial effect is more salient among firms with lower bond liquidity, supporting the “bond liquidity story” that investors anticipate increased bond liquidity following GB issuance and thus charge lower credit spreads. In contrast, we find limited evidence for alternative explanations such as the “default risk story,” “halo effect story,” or “information asymmetry story.” Our research highlights the financial benefits of GB issuance and contributes to related literature on the economic implications of green finance. The findings also offer valuable insights for policymakers and corporate executives seeking to promote sustainable investment.

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走向绿色发行绿色债券对企业债务融资成本的影响

本文研究了发行绿色债券（GB）对同一企业发行的非绿色债券（NGB）信用利差的影响。基于 2013 年至 2021 年的中国债券市场数据，我们的研究结果表明，绿色债券发行人在发行绿色债券后，非绿色债券的信用利差有所下降，这表明 "绿色化 "可以降低企业的债务融资成本。这种有利效应在债券流动性较低的企业中更为突出，支持了 "债券流动性故事"，即投资者预期国债发行后债券流动性会增加，从而收取较低的信用利差。相比之下，我们发现 "违约风险说"、"光环效应说 "或 "信息不对称说 "等其他解释的证据有限。我们的研究强调了国标发行的金融效益，并为有关绿色金融的经济影响的相关文献做出了贡献。研究结果还为寻求促进可持续投资的政策制定者和企业高管提供了有价值的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

North American Journal of Economics and Finance Multiple-

CiteScore

7.30

自引率

8.30%

发文量

168

期刊介绍： The focus of the North-American Journal of Economics and Finance is on the economics of integration of goods, services, financial markets, at both regional and global levels with the role of economic policy in that process playing an important role. Both theoretical and empirical papers are welcome. Empirical and policy-related papers that rely on data and the experiences of countries outside North America are also welcome. Papers should offer concrete lessons about the ongoing process of globalization, or policy implications about how governments, domestic or international institutions, can improve the coordination of their activities. Empirical analysis should be capable of replication. Authors of accepted papers will be encouraged to supply data and computer programs.