Green Bond Issuance and Corporate’s Environmental Performance: Evidence from China

Abstract

Through a comparative study of listed non-financial companies in China that issued green bonds and ordinary bonds between 2016 and 2021, it was found that the company's green development strategy is an important factor in promoting issuance of green bonds. In addition, public companies and companies with low asset-liability ratios tend to issue more green bonds. Based on the PSM-DID model, it was also found that the green bond can actually improve the environmental performance of the company after its issuance, thus confirming the important role of the company's green development strategy in the promoting the issuance of green bonds. Finally, policy recommendations are made to encourage the issuance of green bonds.