Green Bond Pricing and Its Determinant: Evidence from Chinese Secondary Market

Karel Janda and Binyi Zhang ()
Additional contact information
Binyi Zhang: Charles University

Chapter Chapter 15 in Regulation of Finance and Accounting, 2022, pp 191-211 from Springer

Abstract: Abstract This paper investigates whether green bonds offer investors in China an attractive yield compared to other equivalent conventional bonds. By applying a matching method and, subsequently, fixed-effect estimation, our empirical results reveal a significant negative yield premium of green bonds on average—1.8 bps lower than that of their conventional counterparts in the Chinese secondary market. Furthermore, we find that green bond premiums vary across issuers’ business sectors, mainly due to the public reputation of bond issuers. We also show that bond credit rating and corporate ESG rating have a significant impact on green bond premiums. Our results point to some practical implications for policymakers and investors.

Keywords: Green bonds; Green bond premium; ESG trading; China (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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:prbchp:978-3-030-99873-8_15

Ordering information: This item can be ordered from
http://www.springer.com/9783030998738

DOI: 10.1007/978-3-030-99873-8_15

Access Statistics for this chapter

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