Research On The Impact Of Third-party Certification Of Green Bonds On Its Financing Costs

At the end of 2015,my country’s green bond market was officially established.The original intention of green bonds,a new financial instrument,is to encourage green investment.The financing cost of green projects is one of the important issues in the industry.For the investment and construction of green projects,the issuer knows the use of financing,and investors do not know the "greenness" of corporate green bonds.Theoretically,third-party certification can provide credit endorsements for green bonds by relieving information asymmetry,reducing the risk expectations of investors,thereby reducing the cost of bond financing of the issuer.The institution has not yet formed a unified certification system.Compared with international certification agencies,it is still distanced.The actual impact of third-party certification on financing costs needs to be tested.Therefore,studying the impact of third-party certification in green bonds in my country on its financing costs is of great significance to improving the theory of green bond financing costs and promoting the development of third-party certification markets.On the basis of studying the theoretical and literature at home and abroad,this article analyzes the theoretical mechanism of the development of green bonds and third-party certification markets.Year-Industry Stable Standard Objection OLS model analysis and research on third-party certification,the top four domestic certification institutions in China and the top four domestic certification institutions on the financing costs of green bonds.(1)The empirical results of this article show that Third-party certification can significantly reduce the financing cost of green bonds,and the cost of financing for green bonds certified by third-party certification is 14 basis points lower than the average bonds that have not obtained third-party certification;(2)The top four internationally four Large certification agencies can significantly reduce the cost of green bonds.The top four domestic certification institutions also have a negative correlation with financing costs,but the reduction effect is not significant.Specifically,the top four internationally four certification agencies can reduce 22 basis points,The top four domestic certification agencies can reduce 0.7 basis points.The reduction of third-party certification for the cost of green bond financing mainly comes from foreign institutions.There is still much room for development in the domestic third-party certification market.Based on empirical conclusions,this article put forward relevant suggestions that regulators should promote green bond standards as soon as possible with international standards,improve the third-party certification system,and increase the threshold for third-party certification agencies of green bonds,and encourage and cultivate the development of local professional certification agencies.Green bond issuers should enhance the awareness of third-party certification,choose a more professional third-party certification agency,increase the awareness of information disclosure,enrich the information of information,thereby reducing financing costs.