ABSTRACT
We find that green bond issuers are more financially constrained. We use three measures of financial constraint, which are the FCP index, the SA index, and the Altman’s Z score. We test the link between green bond issuance and financial constraints using difference in means, regression analyses and a matching procedure. We finally document that these constraints increase after the first green bond issuance.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 Firms with higher FCP and SA indices are more constrained. Firms with lower Z score are considered to have a higher bankruptcy risk.