The impact of issuing green bonds on enhancing enterprise value

Abstract

Based on panel data of 479 listed non-financial companies from 2015 to 2019, in which the companies with green bond issuance
were taken as the processing group while the companies without green bond issuance were taken as the control group, the policy time-inconsistent DID model was used to explore the impact of green bond issuance on corporate value enhancement. The study shows that the issuance
of green bonds by sample companies can significantly enhance corporate value, and this conclusion has passed the robustness test. Meanwhile it can also reduce the financing cost of the enterprise and promote the green transformation and upgrading of the whole economy. In addition, it is also found that the control variables at the enterprise level may affect the role of green bonds. It showed that the enhancement of
enterprise value will be affected by the scale of the enterprise, the management capability of the enterprise, and the solvency of the enterprise
after an enterprise issues green bonds. In turn, these factors will directly affect the enterprise value. Therefore, control variables added to the
regression process is very necessary. Limitations of this paper are as follows: some companies have not yet been listed or listed on A-shares
among all the companies issuing green bonds, so this paper does not consider the impact of green bond issuance on themselves. In the future,
the data of non-listed companies can be used to further study the impact of issuing green bonds on their business performance.