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Green bond issuance and stock price informativeness

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  • Wang, Hu
  • Jiang, Shuyang

Abstract

This paper explores the relationship between green bond issuance and stock price informativeness (SPI) from the perspective of green finance. Based on the green bond issuance data of listed firms in China, we use the difference-in-differences model to test the impact of green bond issuance on SPI. We find that green bond issuance significantly improves SPI, and green bond issuance improves SPI by increasing information transparency and improving sustainable performance. The cross-sectional test results show that higher independent director network centrality, a higher digitization level, and a higher ESG disclosure level strengthen the positive impact of green bond issuance on SPI. This paper supplements the literature on green bonds and SPI, and also provides empirical evidence that green finance can improve SPI.

Suggested Citation

  • Wang, Hu & Jiang, Shuyang, 2023. "Green bond issuance and stock price informativeness," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 120-133.
    • Handle: RePEc:eee:ecanpo:v:79:y:2023:i:c:p:120-133
    DOI: 10.1016/j.eap.2023.06.011
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    Cited by:

    1. Xiaona Luo & Chan Lyu, 2024. "Green Bonds Drive Environmental Performance: Evidences from China," Sustainability, MDPI, vol. 16(10), pages 1-20, May.
    2. Shanshan Wang & Shih‐Chih Chen & Mohd Helmi Ali & Ming‐Lang Tseng, 2024. "Nexus of environmental, social, and governance performance in China‐listed companies: Disclosure and green bond issuance," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 1647-1660, March.
    3. Zhang, Yuyao & Li, Yinuo & Chen, Xingyu, 2024. "Does green bond issuance affect stock price crash risk? Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).
    4. Wang, Hu & Shen, Hong & Li, Shouwei, 2023. "Does green direct financing work in reducing carbon risk?," Economic Modelling, Elsevier, vol. 128(C).
    5. Wang, Hu & Shen, Hong, 2024. "Self-restraint or external supervision: Green bond issuance and greenwashing," Research in International Business and Finance, Elsevier, vol. 70(PB).

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