ABSTRACT
Green bonds have become a vital financial instrument to promote green development globally in the face of various environmental challenges. This paper investigates the impact of China’s A-share listed companies’ green bond issuance on ESG performance and the potential mechanisms from 2011–2021, using propensity score matching and double difference method (PSM-DID). The study finds that green bonds improve corporate ESG performance by enhancing environmental information disclosure, encouraging green innovation, and improving green reputation. Moreover, heavily polluting industries benefit more from green bond issuance in terms of ESG performance improvement. These findings contribute to understanding the benefits of green bond market in developing countries.
Acknowledgements
We are grateful for the support of the National Social Science Fund Project of China (22CJY054).
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 Including monetized environmental information (environmental liabilities, environmental performance, and governance) and non-monetary environmental information (environmental management, environmental certification, and environmental information disclosure vehicles).