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Green preferences of consumers and corporate green bond costs

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  • Xiao, Daiyou
  • Su, Jinxia

Abstract

The implication of crucial stakeholders, especially consumers, for firm performance has aroused huge interest among scholars. In this article, we test the impact of consumers’ green preferences on the costs of corporate green bonds. Based on a research panel of firms with publicly issued green bonds from 2017 to 2024, we offer strong evidence that consumer green preferences reduce firms’ green bond costs. Moreover, we document that the effect is greater among firms with ineffective corporate governance. Further research unveils that decreased financial misconduct and regulatory violations are important channels. Our study greatly advances the research on sustainability and stakeholders.

Suggested Citation

  • Xiao, Daiyou & Su, Jinxia, 2026. "Green preferences of consumers and corporate green bond costs," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325023141
    DOI: 10.1016/j.frl.2025.109065
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    References listed on IDEAS

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