Whether There Is Stock Price Effect When Issuing Green Bonds

At present,the gradual improvement of the carbon finance has become the key to effectively promoting the upgrading of economic development,which accelerated our country’s process of transforming to the low carbon economic system.Since April 2016,China Bond Information Network began to publish China Green Bond Index and its component bonds,which unified the definition standard of China’s green bonds and has high authority.Under the current theme of carbon neutrality,green finance is undoubtedly an emerging development field with great potential,and the country has introduced a variety of policies to guide its development.As a hot bond field,green bond has become a hot research object.Compared with ordinary bonds,green bonds have many different characteristics,among which the biggest difference is whether they have "green" attribute.Therefore,the issuance requirements and transparency requirements of green bonds are higher than those of ordinary bonds,and the use of funds will be subject to stricter supervision.So what is the value of a green bond compared to a regular bond? What are the benefits to the issuer? What are the advantages of green bonds? Will companies get extra revenue from issuing green bonds? Green bond market started relatively late in our country,and the related research papers are few and incomplete.In order to study the convenience of shareholders’ equity changes,green bonds issued by A-share listed companies are selected.In order to study whether the issuance of green bonds is beneficial to shareholders,this paper uses the event analysis method and takes the date of the announcement of green bonds as the event occurrence node.Based on the capital asset pricing model,it proves the existence of excess returns and the positive response of stock prices to the issuance of green bonds by comparing the stock returns before and after the event.It validates the view that issuing green bonds is good for shareholders.Next,this paper analyzes the mechanism of excess return and verifies two mechanisms,namely financing cost mechanism and investor attention mechanism.When studying the financing cost mechanism,this paper matches similar ordinary bonds for each green bond,and finds that green bonds have a significant premium compared with ordinary bonds through regression.Such results indicate that,compared with ordinary bonds,issuing green bonds can bring lower financing costs for corporate shareholders,which can be reflected in the excess returns of stocks through the effectiveness of the market.When studying investors’ attention mechanism,this paper selects Amihud index,which indirectly reflects liquidity through illiquidity,to measure stock liquidity,and verifies that stock liquidity has increased significantly in the month announcing the issuance of green bonds,which further indicates that the issuance of green bonds will increase investors’ attention to the issuing company.To sum up,the research results of this paper show that issuing green bonds can reduce corporate financing costs,increase investors’ attention,and then bring excess returns on equity,which is beneficial to existing shareholders.At the end of the paper put forward the relevant policy suggestions.