Research On The Stock Price Effect Of Green Bond Issuance By Listed Companies

As China’s economy shifts from high growth to high quality growth,a sustainable economy occupies a more important position in the national strategic layout.The development of green finance is an inevitable choice for green development and an important issue for economic transformation,upgrading and sustainable development.Green bonds are an essential support for the development of a green financial system,which can bring into full play the green potential of enterprises and create a favourable environment for low-carbon green development.At present,China’s green bond market is developing deeply,and China has become the World’s second largest green bond issuing country.The China Green Bond Principles issued by the Green Bond Standard Committee will further promote China’s green bond market to a new stage of regulation,standards and international development.Therefore,it is important to explore the share price effect of green bond issuance by listed companies to deepen the development of green finance as well as to help green low-carbon transformation,which can stimulate the motivation of listed companies to issue and enhance investors’ investment enthusiasm,and is an important way to help the green low-carbon and high-quality development of the economy and society.On the basis of reading and summarizing the existing literature,quarterly data of A-share non-financial listed companies for the three quarters from 2015-2022 are selected and empirically analyzed based on a multi-temporal double difference model to investigate whether issuing green bonds has a share price effect.Investor sentiment is also used as a mechanism variable to explore the role played by investor sentiment in green bond issuance and share price movements,and to further verify how financing constraints and agency costs affect the share price of listed companies after green bond issuance.The impact of green bond issuance on the share price of listed companies is also examined in terms of differences in equity,region and industry,respectively.The empirical analysis concludes that the share price of listed companies issuing green bonds is higher than that of listed companies not issuing green bonds.In addition,the mechanism variable test verifies the effect of rising investor sentiment on share price,and further verifies that issuing green bonds can enhance the share price of listed companies by alleviating financing constraints and reducing agency costs.After robustness tests,the above findings still hold.A sub-sample test is also conducted from the perspectives of heterogeneity of property rights,regional heterogeneity and industry heterogeneity,and it is found that the share price effect of state-owned enterprises,eastern regions and heavily polluting industries is more significant after the issuance of green bonds.Finally,based on the above empirical findings,corresponding countermeasures are proposed from the government,enterprises and investors on the problems in the development of green bonds,so as to promote the development of green bond market in a more efficient and standardized manner,enhance the investment value of companies while promoting the development of green finance and low-carbon transformation.