The effect of ESG regulatory enforcement on green bond price efficiency

Zhibin Hao and Jia Guan

International Review of Financial Analysis, 2025, vol. 106, issue C

Abstract: This paper explores the effect of ESG regulation enforcement on green bond price efficiency. Grounded in a large panel data covering all publicly traded green bonds, this research reveals that the strength of ESG regulation enforcement dramatically enhances the efficiency of green bond pricing. Further analysis shows that analyst coverage and reputational audit firms negatively moderate the positive relation we found. The findings remain robust after addressing endogeneity issues and conducting sensitivity checks. Overall, this paper makes a significant contribution to the finance studies on ESG and the determinants of bond price efficiency.

Keywords: ESG; Regulation enforcement; Green bond; Information transparency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:106:y:2025:i:c:s1057521925006040

DOI: 10.1016/j.irfa.2025.104517

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