 Bonds for a Bluer Tomorrow: Corporate climate concern and its impact on corporate bond maturitiesChao Liang, Jinyu Yang, Lihua Shen and Luu Duc Toan Huynh Journal of International Money and Finance, 2025, vol. 153, issue C Abstract: The study examines whether and how corporate climate concern (CCC) affects the maturity of corporate bonds. Based on the information in a company annual report’s management discussion and analysis (MD&A) section, we construct a corporate climate concern index using text analysis methods. The empirical findings indicate that CCC promotes the issuance of longer-term corporate bonds. The findings are robust to controlling for endogeneity issues, and using an alternative CCC measurement and alternative estimation models. A mechanism analysis explains the positive effect of CCC on corporate bond maturity as follows: companies with a high level of concern for climate issues are 1) more inclined to raise funds by issuing longer-term bonds to support their long-term climate management investment plans and 2) more likely to obtain approval for the issuance of longer-term bonds. In addition, we show that the positive effect of CCC on bond maturity is pronounced in firms in better financial conditions and with greater R&D investments. Keywords: Corporate climate concern; Corporate bond maturity; Financial distress; R&D investments (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:jimfin:v:153:y:2025:i:c:s0261560625000312 DOI: 10.1016/j.jimonfin.2025.103296 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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