IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v78y2025ics1544612325004404.html
   My bibliography  Save this article

On the corporate performance of issuers of various green assets

Author

Listed:
  • Piao, Xiaorui
  • Mei, Bin

Abstract

This study examines the corporate performance of green and brown asset issuers in China and the driving forces for the asset premium of green bonds, asset-backed securities (ABSs) and real estate investment trusts (REITs). Using quarterly data from 2016 to 2023 under a two-layered model structure, a significant positive impact is found on the corporate profitability of companies issuing green bonds and ABSs compared to brown securities, but insignificant results for green REITs. While green bonds help improve corporate performance, having green bonds and ABSs simultaneously is more conducive. A higher environmental, social, and governance (ESG) rating, an environmentally friendly issuer and an involvement in renewable energy or new energy vehicle businesses all have beneficial effects on the issuer's profitability regardless of the type of assets launched. Moreover, credit enhancement leads to a higher premium especially for corporate assets without a guarantee clause or frequent transactions. In summary, to boost the influence of green assets, companies should improve their ESG rating and green reputation, and the government should advance research and promotion of green financial instruments, improve information disclosure and risk evaluation, and advocate the renewable energy and new energy vehicle sectors.

Suggested Citation

  • Piao, Xiaorui & Mei, Bin, 2025. "On the corporate performance of issuers of various green assets," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004404
    DOI: 10.1016/j.frl.2025.107177
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325004404
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107177?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Zhou, Guangyou & Zhu, Jieyu & Luo, Sumei, 2022. "The impact of fintech innovation on green growth in China: Mediating effect of green finance," Ecological Economics, Elsevier, vol. 193(C).
    2. Naoyuki Yoshino & Ehsan Rasoulinezhad & Farhad Taghizadeh-Hesary, 2021. "Economic Impacts of Carbon Tax in a General Equilibrium Framework: Empirical Study of Japan," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 23(01n02), pages 1-25, June.
    3. Bing Wang, 2021. "The Evolving Real Estate Market Structure in China," Management for Professionals, in: Bing Wang & Tobias Just (ed.), Understanding China’s Real Estate Markets, edition 2, pages 9-19, Springer.
    4. Leping Huang & Yuning Cao & Yingfu Zhu, 2023. "Is there any recovery power for economic growth from green finance? Evidence from OECD member countries," Economic Change and Restructuring, Springer, vol. 56(6), pages 3909-3926, December.
    5. Coën, Alain & Desfleurs, Aurélie, 2022. "The relative performance of green REITs: Evidence from financial analysts’ forecasts and abnormal returns," Finance Research Letters, Elsevier, vol. 45(C).
    6. Wang, Yu & Cheung, Adrian (Wai Kong) & Yan, Wanlin & Wang, Bin, 2024. "Green bond and green stock in China: The role of economic and climate policy uncertainty," The North American Journal of Economics and Finance, Elsevier, vol. 74(C).
    7. Li, Quan & Zhang, Kai & Wang, Li, 2022. "Where's the green bond premium? Evidence from China," Finance Research Letters, Elsevier, vol. 48(C).
    8. Pástor, Ľuboš & Stambaugh, Robert F. & Taylor, Lucian A., 2022. "Dissecting green returns," Journal of Financial Economics, Elsevier, vol. 146(2), pages 403-424.
    9. Umar, Zaghum & Hadhri, Sinda & Abakah, Emmanuel Joel Aikins & Usman, Muhammad & Umar, Muhammad, 2024. "Return and volatility spillovers among oil price shocks and international green bond markets," Research in International Business and Finance, Elsevier, vol. 69(C).
    10. Kamel Si Mohammed & Vanessa Serret & Christian Urom, 2024. "The Effect of Green Bonds on Climate Risk Amid Economic and Environmental policy uncertainties," Post-Print hal-04444957, HAL.
    11. Tan, Xiujie & Dong, Hanmin & Liu, Yishuang & Su, Xin & Li, Zixian, 2022. "Green bonds and corporate performance: A potential way to achieve green recovery," Renewable Energy, Elsevier, vol. 200(C), pages 59-68.
    12. Emre Ozdenoren & Kathy Yuan & Shengxing Zhang, 2023. "Dynamic Asset-Backed Security Design," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 3282-3314.
    13. Houda Dziri & Anis Jarboui, 2024. "The moderating effect of the CSR committee on the relationship between CSR performance and financial performance: empirical evidence from European firms," International Studies of Management & Organization, Taylor & Francis Journals, vol. 54(2), pages 85-104, April.
    14. Hashemizadeh, Ali & Ju, Yanbing & Abadi, Faezeh Zareian Baghdad, 2024. "Policy design for renewable energy development based on government support: A system dynamics model," Applied Energy, Elsevier, vol. 376(PB).
    15. Xiru Li & Bo Zhu & Yufei Zhang, 2024. "Greenium of green securitization: Does external certification matter?," PLOS ONE, Public Library of Science, vol. 19(8), pages 1-27, August.
    16. Zerbib, Olivier David, 2019. "The effect of pro-environmental preferences on bond prices: Evidence from green bonds," Journal of Banking & Finance, Elsevier, vol. 98(C), pages 39-60.
    17. Wu, Yue, 2022. "Are green bonds priced lower than their conventional peers?," Emerging Markets Review, Elsevier, vol. 52(C).
    18. Xiaorui Piao & Bin Mei, 2023. "The Financial Performance of Newly Launched Chinese Infrastructure REITs," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 29(2), pages 106-126, July.
    19. Dina Azhgaliyeva & Zhanna Kapsalyamova, 2023. "Policy support in promoting green bonds in Asia: empirical evidence," Climate Policy, Taylor & Francis Journals, vol. 23(4), pages 430-445, April.
    20. Jihwan Yeon & Seoki Lee & Phillip M Jolly & Anna S Mattila, 2023. "The impact of environmental management on firm performance in the U.S. lodging REITs: The moderating role of outside board of directors," Tourism Economics, , vol. 29(2), pages 513-532, March.
    21. Qian, Shuitu & Yu, Wenzhe, 2024. "Green finance and environmental, social, and governance performance," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 1185-1202.
    22. Zhang, LiXia & Baloch, Zulfiqar Ali & Niu, Guangli, 2023. "Effects of COVID-19 on green bonds, renewable power stocks, and carbon markets: A dynamic spillover analysis," Renewable Energy, Elsevier, vol. 216(C).
    23. Mohammed, Kamel Si & Serret, Vanessa & Urom, Christian, 2024. "The effect of green bonds on climate risk amid economic and environmental policy uncertainties," Finance Research Letters, Elsevier, vol. 62(PA).
    24. Wang, Hu & Jiang, Shuyang, 2023. "Green bond issuance and stock price informativeness," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 120-133.
    25. Ehsan Rasoulinezhad, 2020. "Environmental Impact Assessment Analysis in the Kahak’s Wind Farm," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 22(01n02), pages 1-15, June.
    26. He, Yu & Liu, Ruizhi, 2023. "The impact of the level of green finance development on corporate debt financing capacity," Finance Research Letters, Elsevier, vol. 52(C).
    27. Ye, Xiang & Rasoulinezhad, Ehsan, 2023. "Assessment of impacts of green bonds on renewable energy utilization efficiency," Renewable Energy, Elsevier, vol. 202(C), pages 626-633.
    28. Liu, Zhuang & Li, Xingyi, 2024. "The impact of bank fintech on ESG greenwashing," Finance Research Letters, Elsevier, vol. 62(PB).
    29. Saboori, Behnaz & Gholipour, Hassan F. & Rasoulinezhad, Ehsan & Ranjbar, Omid, 2022. "Renewable energy sources and unemployment rate: Evidence from the US states," Energy Policy, Elsevier, vol. 168(C).
    30. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yuecheng Xu & Yunfei Cai, 2024. "RETRACTED ARTICLE: Is green finance a motivator for energy transformation investments in the OECD?," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-15, June.
    2. Chu, Mingbin & Li, Bingwei & Gu, Weiyu & Dai, Xiajing, 2024. "Role of green finance in enhancing the sustainability in the mining sector in Asia," Resources Policy, Elsevier, vol. 88(C).
    3. Sun, Yunpeng & Wang, Jin & Wang, Xiuhui & Wei, Xinyu, 2023. "Achieving energy justice and common prosperity through green energy resources," Resources Policy, Elsevier, vol. 81(C).
    4. Xiwen Yin & Dingqing Wang & Jingjing Lu & Lei Liu, 2023. "Does green credit policy promote corporate green innovation? Evidence from China," Economic Change and Restructuring, Springer, vol. 56(5), pages 3187-3215, October.
    5. Xu, Jin & Liu, Chengjun & Dou, Gang & Cai, Yunfei, 2024. "Mineral resource management in Chinese rural areas: Policy assessment for green economic growth," Resources Policy, Elsevier, vol. 90(C).
    6. Dai, Xiajing & Zhang, Junjie, 2024. "China's green development journey through resource rent optimization and green finance policies," Resources Policy, Elsevier, vol. 90(C).
    7. Ge, Yongbo & Zhu, Yuexiao, 2022. "Boosting green recovery: Green credit policy in heavily polluted industries and stock price crash risk," Resources Policy, Elsevier, vol. 79(C).
    8. Sheng Xu & Weiyu Gu, 2024. "Dual carbon economy modeling in advanced economies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    9. Wang, Shuhong & Xing, Lu & Chen, Xueli & Song, Malin, 2024. "Evaluating and enhancing natural resource asset management efficiency in China: A data envelopment analysis study," Resources Policy, Elsevier, vol. 92(C).
    10. Nie, Peng & Zhong, Juncheng & Ren, Zhengliang & Huang, Jinglei, 2024. "Sustainable financing solutions for the growth of resource-driven economies in the digital economy age," Resources Policy, Elsevier, vol. 98(C).
    11. Chunyang Wang & Qianqian He & Jian Xu, 2024. "RETRACTED ARTICLE: Exploring the role of quality and inclusive education in meeting sustainable development goals," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-15, June.
    12. Ruxing Lin & Guangcheng Ma & Jianhua Cao, 2024. "Do Green Bonds Help to Improve Enterprises’ Financing Efficiency? Empirical Evidence Based on Chinese A-Share Listed Enterprises," Sustainability, MDPI, vol. 16(17), pages 1-20, August.
    13. Zhang, Ming & Wei, Xuejiao, 2024. "Resource efficiency, cultural industry, and green economic growth: A synergistic approach," Resources Policy, Elsevier, vol. 90(C).
    14. Du, Ruoyao, 2024. "Assessment of impacts of critical mineral resources on sustainable transport sector," Resources Policy, Elsevier, vol. 98(C).
    15. Weijuan Feng & Xiangbin Zuo, 2024. "RETRACTED ARTICLE: The intersection of China’s rural economy, renewable energy, and carbon neutrality," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-18, April.
    16. Xiangyi Xu & Qianrong Wang, 2024. "RETRACTED ARTICLE: Greening the bottom line: navigating legal and financial dimensions of energy digital transition in the modern economy," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-16, April.
    17. Zhao, Jing, 2024. "Impact of green finance on low-carbon transformation: Spatial spillover effects in China," The North American Journal of Economics and Finance, Elsevier, vol. 74(C).
    18. Liu, Donghui & Shang, Zhaoyan & Lin, Tongzhi & Yue, Shuguang, 2024. "Balancing law, sustainability, and the economy in China's responsible mineral resource extraction path," Resources Policy, Elsevier, vol. 90(C).
    19. Xu, Chunguang & Li, Xiaohui, 2023. "The efficiency of natural resource consumption and government administration concerning green economic growth in Asian countries," Resources Policy, Elsevier, vol. 82(C).
    20. Xiaona Luo & Chan Lyu, 2024. "Green Bonds Drive Environmental Performance: Evidences from China," Sustainability, MDPI, vol. 16(10), pages 1-20, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G3 - Financial Economics - - Corporate Finance and Governance

    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:78:y:2025:i:c:s1544612325004404. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.