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Green Bond Issuance Enhances Corporate Value: Evidence from China

Zhang, Kunchen LU and Fu, Xiaoxuan LU (2024) BUSN79 20241
Department of Business Administration
Abstract
Purpose: To investigate whether the issuance of green bonds has a positive impact on corporate value.
Methodology: Utilizing a comprehensive dataset of 1684 non-financial A-share listed companies from 2014 to 2022, the study employs a multi-period difference-in-difference model, parallel testing, heterogeneity analysis, and mechanism testing. Tobin’s Q is used as dependent variable, post*treat is a dummy variable that is used as the main explanatory variable. Additionally, six control variables are used in this paper, and the model controls both firm fixed effects and time fixed effects.
Theoretical Perspectives: The study is grounded in stakeholder theory, agency theory, signaling theory, and corporate social responsibility theory,... (More)
Purpose: To investigate whether the issuance of green bonds has a positive impact on corporate value.
Methodology: Utilizing a comprehensive dataset of 1684 non-financial A-share listed companies from 2014 to 2022, the study employs a multi-period difference-in-difference model, parallel testing, heterogeneity analysis, and mechanism testing. Tobin’s Q is used as dependent variable, post*treat is a dummy variable that is used as the main explanatory variable. Additionally, six control variables are used in this paper, and the model controls both firm fixed effects and time fixed effects.
Theoretical Perspectives: The study is grounded in stakeholder theory, agency theory, signaling theory, and corporate social responsibility theory, exploring how green bonds impact corporate governance and financial health.
Empirical Foundation: The empirical analysis is based on a comprehensive dataset of 15149 firm-year observations. The study investigates the unique regulatory and market conditions in China, providing insights into how green bonds affect firms with different ownership structures.
Conclusions: The issuance of green bonds significantly enhances corporate value, with a more pronounced effect in private firms compared to state-owned enterprises. Green bonds help alleviate financing constraints and improve market perception. This research provides empirical evidence supporting the financial and governance benefits of green bonds in emerging markets.
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author
Zhang, Kunchen LU and Fu, Xiaoxuan LU
supervisor
organization
course
BUSN79 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
Green Bond, Corporate Value, Emerging Markets, Financing Constraints, Corporate Governance
language
English
id
9168240
date added to LUP
2024-08-07 17:02:17
date last changed
2024-08-07 17:02:17
@misc{9168240,
  abstract     = {{Purpose: To investigate whether the issuance of green bonds has a positive impact on corporate value.
Methodology: Utilizing a comprehensive dataset of 1684 non-financial A-share listed companies from 2014 to 2022, the study employs a multi-period difference-in-difference model, parallel testing, heterogeneity analysis, and mechanism testing. Tobin’s Q is used as dependent variable, post*treat is a dummy variable that is used as the main explanatory variable. Additionally, six control variables are used in this paper, and the model controls both firm fixed effects and time fixed effects.
Theoretical Perspectives: The study is grounded in stakeholder theory, agency theory, signaling theory, and corporate social responsibility theory, exploring how green bonds impact corporate governance and financial health.
Empirical Foundation: The empirical analysis is based on a comprehensive dataset of 15149 firm-year observations. The study investigates the unique regulatory and market conditions in China, providing insights into how green bonds affect firms with different ownership structures.
Conclusions: The issuance of green bonds significantly enhances corporate value, with a more pronounced effect in private firms compared to state-owned enterprises. Green bonds help alleviate financing constraints and improve market perception. This research provides empirical evidence supporting the financial and governance benefits of green bonds in emerging markets.
}},
  author       = {{Zhang, Kunchen and Fu, Xiaoxuan}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Green Bond Issuance Enhances Corporate Value: Evidence from China}},
  year         = {{2024}},
}