The effect of the stock price of the green bond issue by companies listed in China: A case study of the manufacturing industry

Abstract

Under the call for the construction of ecological civilization in the new era, the attention of the whole society to green finance has gradually increased. Among them, green bonds, as the largest and most mature green financial products in China’s green finance market, have an increasing impact on social benefits and economic development. Taking the manufacturing industry as an example, this paper studied the stock price effect of 21 listed companies when they first announced green bond issuances through the event study method. The findings showed that publicly issued green bonds by listed manufacturers would make a significant positive impact on corporate share prices during the window period. This result showed that the issuance of green bonds would attract more equity investment, which was conducive to encouraging listed manufacturing companies to carry out green finance reform through the issuance of green bonds and contributed to the sustainable evolution of China’s economy.