IDEAS home Printed from https://ideas.repec.org/a/kap/rqfnac/v64y2025i4d10.1007_s11156-024-01343-8.html
   My bibliography  Save this article

The spillover effect of green bond issuance on corporate financial performances: evidence from China

Author

Listed:
  • Mingyu Hu

    (Tsinghua University)

  • Xinyin Zhang

    (Peking University)

  • Yeyu Zhang

    (Dalian University of Technology)

Abstract

In the context of global warming and environmental protection, the green bond market has been experiencing remarkable growth, necessitating a thorough examination of how companies interpret and react to the “green signals” communicated by these bonds. This study aims to delve into the spillover impact of green bond issuance on the financial performance of peer firms within the same industry. Utilizing panel data from China’s listed companies between 2010 and 2022, we observed that the issuance of green bonds by companies positively influences the financial performance of their peers within the same industry, a phenomenon we term as the “spillover effect”. Furthermore, our analysis suggests that this spillover effect can be attributed to three potential influential mechanisms: market competition, green behaviors, and government subsidies. Specifically, intense market competition enhances the positive spillover effect, while the issuance of green bonds encourages peer companies to adopt environmentally friendly practices and increases their chances of receiving government subsidies. Additionally, our findings indicate that this positive influence is more pronounced in non-polluted sector and among companies with lower financial constraints. These insights provide valuable practical implications for policymakers and managers in promoting green and sustainable development.

Suggested Citation

  • Mingyu Hu & Xinyin Zhang & Yeyu Zhang, 2025. "The spillover effect of green bond issuance on corporate financial performances: evidence from China," Review of Quantitative Finance and Accounting, Springer, vol. 64(4), pages 1567-1593, May.
    • Handle: RePEc:kap:rqfnac:v:64:y:2025:i:4:d:10.1007_s11156-024-01343-8
    DOI: 10.1007/s11156-024-01343-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11156-024-01343-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11156-024-01343-8?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 issuance; Spillover effect; Peer firms; Financial performance; Sustainable development;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

    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:kap:rqfnac:v:64:y:2025:i:4:d:10.1007_s11156-024-01343-8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://springer.com .

    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.