The spillover effects of green bond issuance in peer firms’ financial performance

Yang Deng and Zhaoqin Zhang

Research in International Business and Finance, 2025, vol. 77, issue PA

Abstract: This paper investigates whether the issuance of green bonds generates institutional benefits that facilitate the coordinated development of businesses and the environment. By investigating listed companies in China, we document novel and robust evidence that the issuance of green bonds for the first time positively impacts the performance of peer firms in the same industry. We further reveal that the issuance of green bonds enhances peers' performance by increasing investor attention, promoting environmentally friendly behaviors, and alleviating financial constraints. Overall, our results highlight that the debut of industry green bonds is beneficial for peer firms in the corresponding industry and for green development.

Keywords: Green bonds; Firm performance; Green behavior; Investor attention; Financial constraint (search for similar items in EconPapers)
JEL-codes: G14 G18 G38 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:77:y:2025:i:pa:s0275531925001515

DOI: 10.1016/j.ribaf.2025.102895

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