IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v60y2024ics154461232301214x.html
   My bibliography  Save this article

Green bond issuance and trade credit access: Evidence from Chinese bond market

Author

Listed:
  • Gan, Xiao Dong
  • Zheng, Xiao Yu
  • Li, Cong Cong
  • Zhu, Gui Qin

Abstract

The Chinese bond market has achieved rapid development and gained widespread social attention. This study constructed a sample of corporate bonds in China and tested the impact of green bond issuance on trade credit. We found supply chain spillovers from green bonds, with firms that issue green bonds receiving more trade credit than firms that issue credit bonds. Results remain robust after the propensity score matching, entropy balancing, and instrumental variable approaches to mitigate endogeneity issues. Information asymmetry and social trust can enhance the impact of green bonds on trade credit. The spillover effects are more pronounced among unlisted companies, companies with higher bond ratings, non-polluting industries, and state-owned companies. This study provides insights into the role of green bonds in reducing information asymmetry and enhancing mutual trust in the supply chain.

Suggested Citation

  • Gan, Xiao Dong & Zheng, Xiao Yu & Li, Cong Cong & Zhu, Gui Qin, 2024. "Green bond issuance and trade credit access: Evidence from Chinese bond market," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s154461232301214x
    DOI: 10.1016/j.frl.2023.104842
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232301214X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104842?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Green bond; Trade credit; Supply chain spillovers; Signaling; Environmental commitments;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:60:y:2024:i:c:s154461232301214x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.