 Cross-region analysis of the environmental performance of green bond issuersTchuiendem Nelly Joel, Haitao Zheng and Bing-Yue Liu Finance Research Letters, 2025, vol. 75, issue C Abstract: The green bond market is gaining prominence over time, particularly in sectors in which the environment significantly affects the financial aspects of business activities. The study examines whether green bonds are associated with improved environmental performance based on a longitudinal panel data covering over 35 countries from 2011 to 2022. Using matched bond issuer information and a difference-in-difference (DID) regression, the study finds that green bond issuers compared to non-green bonds issuers with identical financial characteristics and ESG ratings, record better environmental score and fewer carbon intensity post issuance. The findings remain significant for corporate firms and those domiciled in North America and Europe and insignificant for financial firms and those based in Asia. Overall, the results align with signalling theory, suggesting that firms signal their dedication to the environment when they issue green bonds. Keywords: Environmental performance; Green bonds; Climate change; Corporate sustainability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001904 DOI: 10.1016/j.frl.2025.106926 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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