Financial information, green certification, government subsidies and green bond credit spreads–evidence from China

Shouzhen Zeng (), Junfang Hu (), Fengjuan Gu () and Llopis- Albert Carlos ()
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Shouzhen Zeng: Ningbo University
Junfang Hu: Ningbo University
Fengjuan Gu: Party school of CPC Ningbo Municipal Committee
Llopis- Albert Carlos: Universitat Politècnica de València

International Entrepreneurship and Management Journal, 2023, vol. 19, issue 1, No 12, 341 pages

Abstract: Abstract In the context of green bonds playing an increasingly vital role in the green financial market, this study selects 61 green bonds issued in China from 2016 to 2021 as samples to examine the factors influencing green bond credit, including financial information and ratings of issuers, green certification, and government subsidies. First and foremost, based on AHP and entropy method, the financial composite index is constructed to evaluate the issuers’ finance. Additionally, the differences in the cost of green bonds issued by state-owned enterprises (SOEs) and semi-enterprises are explored by adding the property rights variable. Empirical results indicate that the issuer’s rating could significantly affect the credit spread. In addition, the green bond credit spreads of SOEs are more competitive than those of semi-enterprises. When the issuer is a SOE, green bond credit spread has a remarkable negative correlation with finance information. Furthermore, green certification and government grants are not the main factors. Finally, the green bond market, crucial to controlling the green financial system, is presented with specific recommendations for its growth in this study.

Keywords: Green bond; Credit spread; Property rights; Green certification; Government certification (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11365-022-00822-5

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