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Green investors, bond ratings and bond issuance spreads

Author

Listed:
  • Zhang, Lin
  • Han, Jifan
  • Xiong, Yihan
  • Yu, Qing

Abstract

This paper empirically examines the impact of green investors on bond financing costs and their underlying mechanisms using bond issuance data from Chinese listed companies spanning 2019–2023. The findings reveal that green investor shareholding significantly reduces bond issuance spreads, confirming the mechanism through which green investors mitigate credit risks via governance participation and signaling. Bond ratings play a significant mediating role between green investors and issuance spreads. Additionally, the governance effect of green investors is significantly moderated by property rights, with more pronounced governance premiums observed in non-state-owned enterprises.

Suggested Citation

  • Zhang, Lin & Han, Jifan & Xiong, Yihan & Yu, Qing, 2025. "Green investors, bond ratings and bond issuance spreads," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325015727
    DOI: 10.1016/j.frl.2025.108318
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    References listed on IDEAS

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