The Impact of Corporate ESG Performance on Its Cost of Green Bond Financing: An Empirical Study

Yixuan Liu ()
Additional contact information
Yixuan Liu: Southwestern University of Finance and Economics, SWUFE School of Finance - Institute of Chinese Financial Studies

A chapter in Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024), 2024, pp 372-381 from Springer

Abstract: Abstract Within the framework of sustainable development, the Environmental, Social, and Governance (ESG) metrics of corporate entities have emerged as vital indicators for assessing long-term viability and serve as a crucial reference for the assessment of companies by investors and other stakeholders. It has been posited that entities exhibiting a superior ESG profile are more likely to adhere to responsibility standards and enhance their corporate reputation, potentially resulting in reduced costs of capital when seeking funds through green debt instruments. To evaluate the veracity and reliability of this hypothesis, the study endeavors to elucidate the specific influences of ESG performance on the green bond financing costs incurred by corporations. As a basis for empirical inquiry, an initial dataset comprising firms listed on the Shanghai, Shenzhen, and Beijing stock exchanges from 2015 to 2023 was utilized. The ESG performance scores provided by SynTao Green Consulting Company served as a metric for evaluating the ESG standings of these listed entities. Findings from the research indicate a correlation whereby corporations with heightened ESG performance are subject to reduced costs associated with green bond financing. Furthermore, results suggest that variations across different industries may lead to divergent outcomes regarding the influence of ESG performance on financing costs. This analysis underscores the significance of ESG considerations in the financial strategizing of firms, particularly in relation to sustainable finance instruments.

Keywords: ESG performance; Green bond; Financing cost; SynTao Green; Panel regression analysis (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-506-5_41

Ordering information: This item can be ordered from
http://www.springer.com/9789464635065

DOI: 10.2991/978-94-6463-506-5_41

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().