Do Investors Care About Green Bonds? Evidence From China
DOI:
https://doi.org/10.62177/apemr.v2i3.370Keywords:
ESG, Green Bond, Abnormal ReturnAbstract
This study provides an empirical examination of green bond issuance within the Chinese capital market and its differential effects on short-term and long-term corporate stock performance. Em-ploying both event studies and DID analysis, I investigate the impact of green bonds, compared to conventional bonds. The findings reveal that green bond issuance elicits positive short-term market reactions, reflected by positive CAR before and after the issuance announcement, which is separated by an insignificant negative CAR on and days after the announcement. However, the long-term analysis indicates no significant effect on stock price or firm valuation, suggesting the market's limited recognition of long-term ESG improvements. The research highlights sec-tor-specific responses, with public utilities and state-owned enterprises exhibiting more pro-nounced reactions to green bond announcements. These outcomes underscore the complexity of the green bond impact in the context of the evolving standards and investor perceptions shaping the Chinese market.
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Copyright (c) 2025 Yuyu Zheng, Yiqi Feng, Tian Wang
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
DATE
Accepted: 2025-05-26
Published: 2025-06-09
