Green bond issuance and corporate environmental and financial performance: A meta-analysis

Abstract

Green bonds align corporations’ financial investments with their sustainability goals. This meta-analysis synthesizes 132 estimates of environmental outcomes and 108 estimates of financial outcomes to evaluate the impact of green bond issuance on corporate performance. We find that while green bonds positively affect environmental performance, their impact on financial performance is not consistently significant. Subgroup analyses reveal significant heterogeneity in the financial outcomes, influenced by factors such as geographic region, bond maturity, chosen financial metrics, and methodological variations across studies. In contrast, the positive effect on environmental performance appears more robust across diverse contexts. These findings highlight the need for harmonized standards to reduce market fragmentation. Furthermore, targeted policy interventions, such as subsidies and capacity-building initiatives, are crucial to offset the costs associated with green bond issuance and encourage broader adoption across market segments. This study provides insights for policymakers, investors, and stakeholders aiming to enhance the role of green bonds in advancing sustainable development.