Green bond vs conventional bond: Outline the rationale behind issuance choices in China
Boqiang Lin () and
International Review of Financial Analysis, 2022, vol. 81, issue C
Increasingly serious ecological problems have generated considerable focus on environmental-friendly green bonds. Although it has been experiencing rapid development, the rationales behind its issuance remained largely unexplored. This paper makes an initial discussion based on China. We analyze the roles of potential factors that might affect issuers to choose between green or conventional bonds, as well as identify the confrontational combinations of the statistically significant determinants. A sample of green and matching conventional corporate bond issuance records since 2016 is studied through the binary choice regressions (Probit and Logit) and fuzzy set qualitative comparative analysis (fs-QCA). The results demonstrate different motives and premises drive firms to choose green or conventional bonds when using debt financing. This choice can be eventually attributed to the financing demand and the preference of issuers. The factors related to bonds' specific characteristics, issuers' financial features, and external ambience conditions might play significant roles in this decision process. Additionally, we summarized three causal paths affecting the green bond issuance choice. Overall, this paper provides a knowledge basis for targeted encouraging green bond issuance, some corresponding implications are also concluded.
Keywords: Green bonds; China; Issuance; Motivation; Logit/Probit; fs-QCA (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:81:y:2022:i:c:s1057521922000382
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 ().