Green bond issuance and corporate ESG performance: the perspective of internal attention and external supervision

Abstract Based on the staggered difference-in-difference (DID) model, this paper uses Chinese listed firms between 2012 and 2020 to investigate the impact of green bond issuance on corporate environmental, social and governance (ESG) performance. We provide evidence that green bond issuance positive...

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Bibliographic Details
Published inHumanities & social sciences communications Vol. 10; no. 1; pp. 437 - 12
Main Authors Chen, Jinyu, Yang, Yan, Liu, Ran, Geng, Yuan, Ren, Xiaohang
Format Journal Article
LanguageEnglish
Published London Palgrave Macmillan 01.12.2023
Springer Nature
Subjects
Bond markets
Carbon
Climate change
Emissions
Environmental governance
Environmental performance
Environmental protection
False information
Financial instruments
Hypotheses
Literature reviews
Social responsibility
Stakeholders
Stock exchanges
Supervision
Sustainable development
China
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Summary:Abstract Based on the staggered difference-in-difference (DID) model, this paper uses Chinese listed firms between 2012 and 2020 to investigate the impact of green bond issuance on corporate environmental, social and governance (ESG) performance. We provide evidence that green bond issuance positively enhances corporate ESG performance. Green bond issuance mainly promotes corporate ESG performance through the internal attention effect and the external supervision effect. Moreover, the positive correlation between green bond issuance and corporate ESG performance is more prominent among companies with larger size, higher government subsidies and executives with environmental experience. The extended analysis shows that green bond issuance can promote the enhancement of firm valuation. This study provides theoretical guidance for the use of green financial systems to promote corporate ESG performance.
ISSN:2662-9992
2662-9992
DOI:10.1057/s41599-023-01941-2