IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v10y2023i1d10.1057_s41599-023-01941-2.html
   My bibliography  Save this article

Green bond issuance and corporate ESG performance: the perspective of internal attention and external supervision

Author

Listed:
  • Jinyu Chen

    (Central South University
    Central South University)

  • Yan Yang

    (Central South University)

  • Ran Liu

    (Central South University)

  • Yuan Geng

    (Central South University)

  • Xiaohang Ren

    (Central South University)

Abstract

Based on the staggered difference-in-difference (DID) model, this paper uses Chinese listed firms between 2012 and 2020 to investigate the impact of green bond issuance on corporate environmental, social and governance (ESG) performance. We provide evidence that green bond issuance positively enhances corporate ESG performance. Green bond issuance mainly promotes corporate ESG performance through the internal attention effect and the external supervision effect. Moreover, the positive correlation between green bond issuance and corporate ESG performance is more prominent among companies with larger size, higher government subsidies and executives with environmental experience. The extended analysis shows that green bond issuance can promote the enhancement of firm valuation. This study provides theoretical guidance for the use of green financial systems to promote corporate ESG performance.

Suggested Citation

  • Jinyu Chen & Yan Yang & Ran Liu & Yuan Geng & Xiaohang Ren, 2023. "Green bond issuance and corporate ESG performance: the perspective of internal attention and external supervision," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-01941-2
    DOI: 10.1057/s41599-023-01941-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-023-01941-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-023-01941-2?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. Vitolla, Filippo & Raimo, Nicola & Rubino, Michele & Garegnani, Giovanni Maria, 2021. "Do cultural differences impact ethical issues? Exploring the relationship between national culture and quality of code of ethics," Journal of International Management, Elsevier, vol. 27(1).
    2. Hoje Jo & Maretno Harjoto, 2011. "Corporate Governance and Firm Value: The Impact of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 103(3), pages 351-383, October.
    3. Sinha, Avik & Mishra, Shekhar & Sharif, Arshian & Yarovaya, Larisa, 2021. "Does Green Financing help to improve the Environmental & Social Responsibility? Designing SDG framework through Advanced Quantile modelling," MPRA Paper 108150, University Library of Munich, Germany, revised 2021.
    4. Du, Juntao & Shen, Zhiyang & Song, Malin & Vardanyan, Michael, 2023. "The role of green financing in facilitating renewable energy transition in China: Perspectives from energy governance, environmental regulation, and market reforms," Energy Economics, Elsevier, vol. 120(C).
    5. Al Mamun, Md & Boubaker, Sabri & Nguyen, Duc Khuong, 2022. "Green finance and decarbonization: Evidence from around the world," Finance Research Letters, Elsevier, vol. 46(PB).
    6. Huang, Wei & Luo, Yan & Wang, Xiaohuan & Xiao, Lifu, 2022. "Controlling shareholder pledging and corporate ESG behavior," Research in International Business and Finance, Elsevier, vol. 61(C).
    7. Tang, Dragon Yongjun & Zhang, Yupu, 2020. "Do shareholders benefit from green bonds?," Journal of Corporate Finance, Elsevier, vol. 61(C).
    8. Flammer, Caroline, 2021. "Corporate green bonds," Journal of Financial Economics, Elsevier, vol. 142(2), pages 499-516.
    9. Chen, Zhongfei & Xie, Guanxia, 2022. "ESG disclosure and financial performance: Moderating role of ESG investors," International Review of Financial Analysis, Elsevier, vol. 83(C).
    10. Tan, Xiujie & Yan, Yaxue & Dong, Yuyang, 2022. "Peer effect in green credit induced green innovation: An empirical study from China's Green Credit Guidelines," Resources Policy, Elsevier, vol. 76(C).
    11. Wong, Jin Boon & Zhang, Qin, 2022. "Stock market reactions to adverse ESG disclosure via media channels," The British Accounting Review, Elsevier, vol. 54(1).
    12. 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).
    13. Jiang, Kangqi & Chen, Zhongfei & Chen, Fanglin, 2022. "Green creates value: Evidence from China," Journal of Asian Economics, Elsevier, vol. 78(C).
    14. Zyglidopoulos, Stelios C. & Georgiadis, Andreas P. & Carroll, Craig E. & Siegel, Donald S., 2012. "Does media attention drive corporate social responsibility?," Journal of Business Research, Elsevier, vol. 65(11), pages 1622-1627.
    15. Duan, Xiaoping & Xiao, Ya & Ren, Xiaohang & Taghizadeh-Hesary, Farhad & Duan, Kun, 2023. "Dynamic spillover between traditional energy markets and emerging green markets: Implications for sustainable development," Resources Policy, Elsevier, vol. 82(C).
    16. Gregory S. Miller, 2006. "The Press as a Watchdog for Accounting Fraud," Journal of Accounting Research, Wiley Blackwell, vol. 44(5), pages 1001-1033, December.
    17. Serena Fatica & Roberto Panzica, 2021. "Green bonds as a tool against climate change?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2688-2701, July.
    18. Martin Lebelle & Souad Lajili Jarjir & Syrine Sassi, 2020. "Corporate Green Bond Issuances: An International Evidence," JRFM, MDPI, vol. 13(2), pages 1-21, February.
    19. Yueyang Zhao & Jinzhou Mao & Yueshan Li, 2022. "Local governments’ environmental emphasis and corporate green innovation: evidence from China," Economic Change and Restructuring, Springer, vol. 55(4), pages 2577-2603, November.
    20. Zhang, Shufan & Zhou, Nan & Feng, Wei & Ma, Minda & Xiang, Xiwang & You, Kairui, 2023. "Pathway for decarbonizing residential building operations in the US and China beyond the mid-century," Applied Energy, Elsevier, vol. 342(C).
    21. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    22. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    23. Zhu, Xuehong & Zuo, Xuguang & Li, Hailing, 2021. "The dual effects of heterogeneous environmental regulation on the technological innovation of Chinese steel enterprises—Based on a high-dimensional fixed effects model," Ecological Economics, Elsevier, vol. 188(C).
    24. 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).
    25. Wang, Jiazhen & Chen, Xin & Li, Xiaoxia & Yu, Jing & Zhong, Rui, 2020. "The market reaction to green bond issuance: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 60(C).
    26. Ellen Pei‐yi Yu & Christine Qian Guo & Bac Van Luu, 2018. "Environmental, social and governance transparency and firm value," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 987-1004, November.
    27. Li, Shihan & Liu, Qingfu & Lu, Lei & Zheng, Kaixin, 2022. "Green policy and corporate social responsibility: Empirical analysis of the Green Credit Guidelines in China," Journal of Asian Economics, Elsevier, vol. 82(C).
    28. Chang, Lei & Taghizadeh-Hesary, Farhad & Chen, Huangen & Mohsin, Muhammad, 2022. "Do green bonds have environmental benefits?," Energy Economics, Elsevier, vol. 115(C).
    29. Eliwa, Yasser & Aboud, Ahmed & Saleh, Ahmed, 2021. "ESG practices and the cost of debt: Evidence from EU countries," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 79(C).
    30. Zhong, Qian & Han, Liyan & Jin, Jiayu, 2022. "Do green credit guidelines impact on heavily polluting firms in rent-seeking?," Finance Research Letters, Elsevier, vol. 47(PB).
    31. Souad Lajili Jarjir & Martin Lebelle & Syrine Sassi, 2020. "Corporate Green Bond Issuances: An International Evidence," Post-Print hal-03044129, HAL.
    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. Wided Khiari & Ines Ben Flah & Azhaar Lajmi & Fida Bouhleli, 2024. "The Stock Market Reaction to Green Bond Issuance: A Study Based on a Multidimensional Scaling Approach," JRFM, MDPI, vol. 17(9), pages 1-33, September.

    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. He, Ling & Dai, Peng-Fei & Hu, Shiyang & Gan, Shengdao, 2024. "Do green bond issuers walk the talk? Exploring the alignment between green bond issuance and subsequent green investment," International Review of Economics & Finance, Elsevier, vol. 94(C).
    2. 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).
    3. Heying Liu & Chan Lyu, 2022. "Can ESG Ratings Stimulate Corporate Green Innovation? Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-20, September.
    4. Román Ferrer & Rafael Benítez & Vicente J. Bolós, 2021. "Interdependence between Green Financial Instruments and Major Conventional Assets: A Wavelet-Based Network Analysis," Mathematics, MDPI, vol. 9(8), pages 1-20, April.
    5. Ann Susan Thomas & Ambili Jayachandran & Ajithakumari Vijayappan Nair Biju, 2024. "Strategic mapping of the environmental social governance landscape in finance – A bibliometric exploration through concepts and themes," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4428-4453, September.
    6. Ballester, Laura & González-Urteaga, Ana & Shen, Long, 2024. "Green bond issuance and credit risk: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 94(C).
    7. Ren, Xiaohang & Zeng, Gudian & Zhao, Yang, 2023. "Digital finance and corporate ESG performance: Empirical evidence from listed companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    8. Pham, Linh & Nguyen, Canh Phuc, 2021. "Asymmetric tail dependence between green bonds and other asset classes," Global Finance Journal, Elsevier, vol. 50(C).
    9. Arif, Muhammad & Hasan, Mudassar & Alawi, Suha M. & Naeem, Muhammad Abubakr, 2021. "COVID-19 and time-frequency connectedness between green and conventional financial markets," Global Finance Journal, Elsevier, vol. 49(C).
    10. Anh Huu Nguyen & Thinh Gia Hoang & Duy Thanh Nguyen & Loan Quynh Thi Nguyen & Duong Thuy Doan, 2023. "The Development of Green Bond in Developing Countries: Insights from Southeast Asia Market Participants," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(1), pages 196-218, February.
    11. Lin, Boqiang & Su, Tong, 2022. "Green bond vs conventional bond: Outline the rationale behind issuance choices in China," International Review of Financial Analysis, Elsevier, vol. 81(C).
    12. Akhtaruzzaman, Md & Banerjee, Ameet Kumar & Ghardallou, Wafa & Umar, Zaghum, 2022. "Is greenness an optimal hedge for sectoral stock indices?," Economic Modelling, Elsevier, vol. 117(C).
    13. Jiang, Yonghong & Wang, Jieru & Ao, Zhiming & Wang, Yujou, 2022. "The relationship between green bonds and conventional financial markets: Evidence from quantile-on-quantile and quantile coherence approaches," Economic Modelling, Elsevier, vol. 116(C).
    14. Jiongye Jin & Jianing Zhang, 2023. "The Stock Performance of Green Bond Issuers During COVID-19 Pandemic: The Case of China," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 30(1), pages 211-230, March.
    15. Xu, Xinkuo & Li, Jingsi, 2023. "Can green bonds reduce the carbon emissions of cities in China?," Economics Letters, Elsevier, vol. 226(C).
    16. 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).
    17. Bhutta, Umair Saeed & Tariq, Adeel & Farrukh, Muhammad & Raza, Ali & Iqbal, Muhammad Khalid, 2022. "Green bonds for sustainable development: Review of literature on development and impact of green bonds," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    18. Andini Nurul Aini & Citra Sukmadilaga & Erlane K. Ghani, 2023. "Green Bonds, Investor Attention and Stock Market Reaction: Evidence from ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 334-343, November.
    19. Yuan, Mingqing, 2024. "Beyond green bonds: Stock market reactions to ESG bond announcements and issuances in Japan," MPRA Paper 120943, University Library of Munich, Germany.
    20. Zhang, Xu & Wang, Pengmian & Xu, Qiuxiang, 2024. "Corporate environmental governance under the coordination of fiscal and financial policies: The case of green credit subsidy policy," Finance Research Letters, Elsevier, vol. 64(C).

    More about this item

    Statistics

    Access and download statistics

    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:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-01941-2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    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.