{"title":"Bond Market Liberalization and Corporate ESG Performance: Evidence From Bond Connect","authors":"Yuling Wang, Yilu Zhang, Bin Miu, Yuliang Long","doi":"10.1111/ecpo.70026","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>This study examines the impact of bond market liberalization on corporate ESG performance using the launch of Northbound Trading under the Bond Connect program as a quasi-natural experiment. Employing a difference-in-differences (DID) approach, the analysis reveals that bond market opening significantly enhances firms'ESG performance. Further evidence suggests that the improvement is mainly driven by better internal control quality and increased green innovation. The positive effects are more pronounced among firms in eastern regions and those with higher financing constraints and stronger market competition. These findings provide new insights into the real effects of financial market liberalization and offer policy implications for promoting sustainable and high-quality economic development.</p>\n </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 2","pages":"345-356"},"PeriodicalIF":2.2000,"publicationDate":"2026-06-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economics & Politics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/ecpo.70026","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2025/12/15 0:00:00","PubModel":"Epub","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study examines the impact of bond market liberalization on corporate ESG performance using the launch of Northbound Trading under the Bond Connect program as a quasi-natural experiment. Employing a difference-in-differences (DID) approach, the analysis reveals that bond market opening significantly enhances firms'ESG performance. Further evidence suggests that the improvement is mainly driven by better internal control quality and increased green innovation. The positive effects are more pronounced among firms in eastern regions and those with higher financing constraints and stronger market competition. These findings provide new insights into the real effects of financial market liberalization and offer policy implications for promoting sustainable and high-quality economic development.
期刊介绍：
Economics & Politics focuses on analytical political economy, broadly defined as the study of economic and political phenomena and policy in models that include political processes, institutions and markets. The journal is the source for innovative theoretical and empirical work on the intersection of politics and economics, at both domestic and international levels, and aims to promote new approaches on how these forces interact to affect political outcomes and policy choices, economic performance and societal welfare. Economics & Politics is a vital source of information for economists, academics and students, providing: - Analytical political economics - International scholarship - Accessible & thought-provoking articles - Creative inter-disciplinary analysis
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