The effect of third-party certification for green bonds: Evidence from China

Hongwei Xing and Tongtong Wu

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

Abstract: We investigate the effect of third-party certification for green bonds by analyzing its impact on issuer's future green innovation performances. We find that third-party certification for green bonds can significantly promote issuer's future green innovation performances. Furthermore, the promotion effect is more prominent in non-state-owned issuers, large issuers and heavy polluting issuers, and can be more significantly exerted by professional and reputable third-party certification agencies. Besides, third-party certification for green bonds can play the effect by reducing the issuer's tax expenditure, increasing the issuer's loan financing, and receiving a positive response in stock returns. But unexpectedly, it cannot play the effect by further reducing the credit spread of green bonds. Our findings indicate that independent external supervision can play a positive role in green bond issuance, but there is still a long way to go.

Keywords: Green bond; Third-party certification; Green innovation performance (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521925006234
Full text for ScienceDirect subscribers only

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:eee:finana:v:106:y:2025:i:c:s1057521925006234

DOI: 10.1016/j.irfa.2025.104536

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().