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Do green bonds affect stock returns and corporate environmental performance? Evidence from China

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  • Fan, Ruixin
  • Xiong, Xiong
  • Li, Youwei
  • Gao, Ya

Abstract

We reveal the positive short-term stock market reaction to the announcement of green bond issuance, which does not exist for factual green bonds. For long-term performance, green bond issuance promotes corporate environmental information disclosure and attracts green investors.

Suggested Citation

  • Fan, Ruixin & Xiong, Xiong & Li, Youwei & Gao, Ya, 2023. "Do green bonds affect stock returns and corporate environmental performance? Evidence from China," Economics Letters, Elsevier, vol. 232(C).
    • Handle: RePEc:eee:ecolet:v:232:y:2023:i:c:s0165176523003476
    DOI: 10.1016/j.econlet.2023.111322
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    References listed on IDEAS

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    More about this item

    Keywords

    Green bond issuance; Factual green bonds; Market reaction; Environmental information disclosure; Green investors;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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