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Label or lever? The role of reputable underwriters in Chinese green bond financing

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  • Su, Tong
  • Shi, Yuning
  • Lin, Boqiang

Abstract

This paper examines the role of underwriter reputation in the cost of green bond financing by focusing on the Chinese scenario for the period 2016–2022. Our empirical results show that bond underwriters’ reputation is negatively associated with the issuance cost of green bonds. Such impact is significantly moderated by the enterprise ownership structure and listed conditions, thereby verifying the existence of bonding and information mechanisms. The effect of underwriter reputation is sounder for enterprises in pilot areas and with high profitability. The economic significance is also estimated to confirm the necessity of selecting reputable underwriters in green bond financing.

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  • Su, Tong & Shi, Yuning & Lin, Boqiang, 2023. "Label or lever? The role of reputable underwriters in Chinese green bond financing," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322007887
    DOI: 10.1016/j.frl.2022.103612
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    Cited by:

    1. Gan, Xiao Dong & Zheng, Xiao Yu & Li, Cong Cong & Zhu, Gui Qin, 2024. "Green bond issuance and trade credit access: Evidence from Chinese bond market," Finance Research Letters, Elsevier, vol. 60(C).

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