Research On Short-Term Market Reaction Of Green Bond In China

In this paper,14 listed companies issued green bonds as research samples.Using the method of event research,the board of directors through the issuance of green bonds on the resolution date and the regulatory body approved the issuance of green bonds on the date of approval for the incidents respectively.To examine the short-term market response of China’s listed companies to issue green bonds.This paper first introduces the development of green bond market,green bond evaluation criteria and processes of China and the international community.Secondly,this paper takes the event research method to study the short-term market reaction of green bonds issued by listed companies in China.Respectively,examined the statistical significance of the daily average abnormal rate of return and average cumulative abnormal rate of return in the event window period of the board of directors passed the resolution when investors first get the news that company may issue green bonds,examined the statistical significance of the daily average abnormal rate of return and average cumulative abnormal rate of return in the event window period of the regulatory body approves the resolution when investors are convinced that green bonds can be issued successfully.Thirdly,this paper examines the statistical significance of the cumulative abnormal rate of return of all sample companies during the two event windows.Finally,this paper draws the following conclusions:(1)In our country,the market is more confident in the legal documents adopted by the regulatory body.(2)Green bonds issued by non-financial companies which specialize in the main business are more popular with the market.(3)Selling green bonds at a lower interest rate will help companies reduce costs,improve performance and enhance corporate value.At the same time,this paper puts forward the corresponding suggestions on the development of the green bond market,the financing decision of the listed companies and the investment attitude of the investors in view of the conclusions.