The Impact of Corporate ESG Performance on Its Cost of Green Bond Financing: An Empirical Study

DOI

10.2991/978-94-6463-506-5_41How to use a DOI?

Keywords

ESG performance; Green bond; Financing cost; SynTao Green; Panel regression analysis

Abstract

Within the framework of sustainable development, the Environmental, Social, and Governance (ESG) metrics of corporate entities have emerged as vital indicators for assessing long-term viability and serve as a crucial reference for the assessment of companies by investors and other stakeholders. It has been posited that entities exhibiting a superior ESG profile are more likely to adhere to responsibility standards and enhance their corporate reputation, potentially resulting in reduced costs of capital when seeking funds through green debt instruments. To evaluate the veracity and reliability of this hypothesis, the study endeavors to elucidate the specific influences of ESG performance on the green bond financing costs incurred by corporations. As a basis for empirical inquiry, an initial dataset comprising firms listed on the Shanghai, Shenzhen, and Beijing stock exchanges from 2015 to 2023 was utilized. The ESG performance scores provided by SynTao Green Consulting Company served as a metric for evaluating the ESG standings of these listed entities. Findings from the research indicate a correlation whereby corporations with heightened ESG performance are subject to reduced costs associated with green bond financing. Furthermore, results suggest that variations across different industries may lead to divergent outcomes regarding the influence of ESG performance on financing costs. This analysis underscores the significance of ESG considerations in the financial strategizing of firms, particularly in relation to sustainable finance instruments.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yixuan Liu
PY  - 2024
DA  - 2024/09/02
TI  - The Impact of Corporate ESG Performance on Its Cost of Green Bond Financing: An Empirical Study
BT  - Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
PB  - Atlantis Press
SP  - 372
EP  - 381
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-506-5_41
DO  - 10.2991/978-94-6463-506-5_41
ID  - Liu2024
ER  -