This paper investigates the impact of green bond issuance on corporate ESG performance using Chinese listed firms from 2012 to 2020. A staggered difference-in-difference (DID) model reveals a positive correlation. This enhancement is attributed to internal attention and external supervision effects. The positive impact is more pronounced in larger firms, those with higher government subsidies, and those with executives possessing environmental experience. The study also shows that green bond issuance improves firm valuation, offering theoretical guidance for using green financial systems to bolster corporate ESG performance.

Jinyu Chen, Yan Yang, Ran Liu, Yuan Geng, Xiaohang Ren