IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v58y2023ipbs1544612323007821.html
   My bibliography  Save this article

The influence of environmental information transparency of green bond on credit rating

Author

Listed:
  • Yang, Ji
  • Shi, Yajie
  • Zhang, Lifeng
  • Hu, Suhuan

Abstract

This paper analyses the impact of environmental information transparency of green bonds on credit ratings . Collecting 217 green bonds issued during 2019–2021 as a research sample. The empirical evidence found that the relationship between environmental information transparency and the credit rating of green bonds is significantly positive; the relationship between environmental information transparency and the credit rating of green bonds is negatively influenced by the penalties imposed on the issuing entities by environmental protection authorities.

Suggested Citation

  • Yang, Ji & Shi, Yajie & Zhang, Lifeng & Hu, Suhuan, 2023. "The influence of environmental information transparency of green bond on credit rating," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007821
    DOI: 10.1016/j.frl.2023.104410
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323007821
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104410?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shang, Yunfeng & Zhu, Lingrou & Qian, Fangbin & Xie, Yani, 2023. "Role of green finance in renewable energy development in the tourism sector," Renewable Energy, Elsevier, vol. 206(C), pages 890-896.
    2. Fatica, Serena & Panzica, Roberto & Rancan, Michela, 2021. "The pricing of green bonds: Are financial institutions special?," Journal of Financial Stability, Elsevier, vol. 54(C).
    3. Baldi, Francesco & Pandimiglio, Alessandro, 2022. "The role of ESG scoring and greenwashing risk in explaining the yields of green bonds: A conceptual framework and an econometric analysis," Global Finance Journal, Elsevier, vol. 52(C).
    4. Piñeiro-Chousa, Juan & López-Cabarcos, M.Ángeles & Caby, Jérôme & Šević, Aleksandar, 2021. "The influence of investor sentiment on the green bond market," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    5. Xu, Guoquan & Lu, Nuotian & Tong, Yan, 2022. "Greenwashing and credit spread: Evidence from the Chinese green bond market," Finance Research Letters, Elsevier, vol. 48(C).
    6. Simeth, Nagihan, 2022. "The value of external reviews in the secondary green bond market," Finance Research Letters, Elsevier, vol. 46(PA).
    7. Liu, Shaohui & Liu, Chuanjiang & Yang, Mian, 2021. "The effects of national environmental information disclosure program on the upgradation of regional industrial structure: Evidence from 286 prefecture-level cities in China," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 552-561.
    8. Yi, Xing & Bai, Caiquan & Lyu, Siyuan & Dai, Lu, 2021. "The impacts of the COVID-19 pandemic on China's green bond market," Finance Research Letters, Elsevier, vol. 42(C).
    9. Juan Piñeiro-Chousa & M.Ángeles López-Cabarcos & Jérôme Caby & Aleksandar Šević, 2021. "The influence of investor sentiment on the green bond market," Post-Print hal-02960892, HAL.
    10. Dong, Xiyong & Xiong, Youlin & Nie, Siyue & Yoon, Seong-Min, 2023. "Can bonds hedge stock market risks? Green bonds vs conventional bonds," Finance Research Letters, Elsevier, vol. 52(C).
    11. Elettra Agliardi & Rossella Agliardi, 2021. "Corporate Green Bonds: Understanding the Greenium in a Two-Factor Structural Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 257-278, October.
    12. García, C. José & Herrero, Begoña & Miralles-Quirós, José Luis & del Mar Mirallles-Quirós, Maria, 2023. "Exploring the determinants of corporate green bond issuance and its environmental implication: The role of corporate board," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    13. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki, 2019. "The way to induce private participation in green finance and investment," Finance Research Letters, Elsevier, vol. 31(C), pages 98-103.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Ran & Luo, Yang, 2024. "Green credit and regional industrial structure upgrading: Evidence from China," Finance Research Letters, Elsevier, vol. 65(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Congcong & Wang, Chong & Long, Huaigang & Zaremba, Adam & Zhou, Wenyu, 2024. "Green bond credit spreads and bank loans in China," International Review of Financial Analysis, Elsevier, vol. 94(C).
    2. Husain, Afzol & Karim, Sitara & Sensoy, Ahmet, 2024. "Financial fusion: Bridging Islamic and Green investments in the European stock market," International Review of Financial Analysis, Elsevier, vol. 94(C).
    3. Abakah, Emmanuel Joel Aikins & Tiwari, Aviral Kumar & Adekoya, Oluwasegun B. & Oteng-Abayie, Eric Fosu, 2023. "An analysis of the time-varying causality and dynamic correlation between green bonds and US gas prices," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    4. Tian, Hao & Long, Shaobo & Li, Zixuan, 2022. "Asymmetric effects of climate policy uncertainty, infectious diseases-related uncertainty, crude oil volatility, and geopolitical risks on green bond prices," Finance Research Letters, Elsevier, vol. 48(C).
    5. Pham, Linh & Cepni, Oguzhan, 2022. "Extreme directional spillovers between investor attention and green bond markets," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 186-210.
    6. Mertzanis, Charilaos, 2023. "Energy policy diversity and green bond issuance around the world," Energy Economics, Elsevier, vol. 128(C).
    7. Liu, Min, 2022. "The driving forces of green bond market volatility and the response of the market to the COVID-19 pandemic," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 288-309.
    8. Xin, Baogui & Jiang, Kai & Santibanez Gonzalez, Ernesto D.R., 2024. "The coevolution effect of central bank digital currency and green bonds on the net-zero economy," Energy Economics, Elsevier, vol. 134(C).
    9. Li, Yanxi & Yu, Conghui & Shi, Jinyan & Liu, Yuanyuan, 2023. "How does green bond issuance affect total factor productivity? Evidence from Chinese listed enterprises," Energy Economics, Elsevier, vol. 123(C).
    10. Tang, Ying & Wang, Biliang & Pan, Ningning & Li, Zhiyong, 2023. "The impact of environmental information disclosure on the cost of green bond: Evidence from China," Energy Economics, Elsevier, vol. 126(C).
    11. Zenno, Yoshihiro & Aruga, Kentaka, 2023. "Investing the factors affecting green bond investments in China: Cases for Beijing and Shenzhen," MPRA Paper 116203, University Library of Munich, Germany.
    12. Wang, Kai-Hua & Zhao, Yan-Xin & Jiang, Cui-Feng & Li, Zheng-Zheng, 2022. "Does green finance inspire sustainable development? Evidence from a global perspective," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 412-426.
    13. Khalfaoui, Rabeh & Mefteh-Wali, Salma & Viviani, Jean-Laurent & Ben Jabeur, Sami & Abedin, Mohammad Zoynul & Lucey, Brian M., 2022. "How do climate risk and clean energy spillovers, and uncertainty affect U.S. stock markets?," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    14. Hu, Yuanfeng & Tian, Yixiang, 2024. "The role of green reputation, carbon trading and government intervention in determining the green bond pricing: An externality perspective," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 46-62.
    15. Long, Shaobo & Tian, Hao & Li, Zixuan, 2022. "Dynamic spillovers between uncertainties and green bond markets in the US, Europe, and China: Evidence from the quantile VAR framework," International Review of Financial Analysis, Elsevier, vol. 84(C).
    16. Hu, Xin & Zhu, Bo & Lin, Renda & Li, Xiru & Zeng, Lidan & Zhou, Sitong, 2024. "How does greenness translate into greenium? Evidence from China's green bonds," Energy Economics, Elsevier, vol. 133(C).
    17. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Rasoulinezhad, Ehsan & Rimaud, Cedric, 2021. "Power purchase agreements with incremental tariffs in local currency: An innovative green finance tool," Global Finance Journal, Elsevier, vol. 50(C).
    18. Dai, Xiajing & Zhang, Junjie, 2024. "China's green development journey through resource rent optimization and green finance policies," Resources Policy, Elsevier, vol. 90(C).
    19. Ren, Xiaohang & Li, Yiying & yan, Cheng & Wen, Fenghua & Lu, Zudi, 2022. "The interrelationship between the carbon market and the green bonds market: Evidence from wavelet quantile-on-quantile method," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    20. Huang, Leping & Zhang, Kuo & Wang, Jingxin & Zhu, Yingfu, 2023. "Examining the interplay of green bonds and fossil fuel markets: The influence of investor sentiments," Resources Policy, Elsevier, vol. 86(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007821. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.