Green bonds: Financial Support to Promote Corporate Sustainability

Abstract

This paper investigates the effect of corporate green bond issuance on ESG performance by Chinese listed companies from 2006 to 2021, and evidence of a significant positive effect is obtained after processing using the CSDID method. Moreover, there is a long-term effect of this effect, which continues to affect the growth of ESG performance of companies. Meanwhile, this article deconstructs ESG into sub-indicators and examines the promotion effect on each sub-indicator, and finds that green bonds have the most obvious promotion effect on environmental performance, followed by governance effect, but no significant promotion effect on social responsibility undertaking. Finally, the article puts forward some relevant suggestions for possible contributions based on the above findings.