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Exploring the mechanism of regional ecological legal governance's impact on corporate bond credit spreads

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  • Dai, Zheyu
  • Liu, Jian

Abstract

This study selects corporate bonds publicly issued in China's exchange market from 2012 to 2022 as the core analysis objects, aiming to deeply dissect the mechanism of how the regional ecological legal system affects corporate bond credit spreads. The research findings indicate that the establishment of intermediate environmental courts has effectively reduced investors' risk premiums for enterprises. Meanwhile, in the context of the establishment of these courts, environmental regulations have become a key factor in lowering corporate risk premiums, exerting a significant mediating effect.

Suggested Citation

  • Dai, Zheyu & Liu, Jian, 2024. "Exploring the mechanism of regional ecological legal governance's impact on corporate bond credit spreads," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013679
    DOI: 10.1016/j.frl.2024.106338
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    References listed on IDEAS

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