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How does green bond issuance affect total factor productivity? Evidence from Chinese listed enterprises

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Listed:
  • Li, Yanxi
  • Yu, Conghui
  • Shi, Jinyan
  • Liu, Yuanyuan

Abstract

To investigate whether micro issuers can benefit from green bonds, we explore the influence of green bond issuance (GBI) on corporate total factor productivity (TFP) with a staggered DID method from 2015 to 2020. We discover a significantly positive and dynamically persistent relationship between GBI and TFP. Mechanism examinations indicate that GBI increases TFP by reducing the extent of maturity mismatch and lowering financing costs. In addition, the enhancement effect of GBI on TFP tends to be more pronounced for non-state-owned firms, non-heavily polluting ones, and enterprises located in regions with lower financial development. Moreover, whether belonging to green financial reform and innovation pilot zones does not affect the improvement impact of green bond issuance on corporate TFP. Our findings provide theoretical guidance for enterprises to improve their development quality and for the government to optimize and innovate macro policies.

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  • Li, Yanxi & Yu, Conghui & Shi, Jinyan & Liu, Yuanyuan, 2023. "How does green bond issuance affect total factor productivity? Evidence from Chinese listed enterprises," Energy Economics, Elsevier, vol. 123(C).
    • Handle: RePEc:eee:eneeco:v:123:y:2023:i:c:s0140988323002530
    DOI: 10.1016/j.eneco.2023.106755
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    More about this item

    Keywords

    Green bonds; Total factor productivity; Maturity mismatch; Financing cost; Investor attention;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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