Climate Risk, Green Transformation and Green Bond Issuance

Under the growing threat of global warming, green bonds have become a pivotal financial instrument to deal with climate change and promote sustainable development. However, the research on the affecting factors of green bond issuance remains scarce in the existing literature, particularly regarding...

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Main Authors: Xiaona Luo, Chan Lyu
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Systems
Subjects:
Online Access:https://www.mdpi.com/2079-8954/13/5/377
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author Xiaona Luo
Chan Lyu
author_facet Xiaona Luo
Chan Lyu
author_sort Xiaona Luo
collection DOAJ
description Under the growing threat of global warming, green bonds have become a pivotal financial instrument to deal with climate change and promote sustainable development. However, the research on the affecting factors of green bond issuance remains scarce in the existing literature, particularly regarding the external influencing factors. In order to study the impact of climate risks faced by enterprises on green bond issuance and its influence mechanism, this paper takes A-share listed companies issuing green bonds in China as samples from 1 January 2000 to 31 December 2022, adopting the Probit model to study how climate risk faced by enterprises influences green bond issuance. The key findings of the research are as follows: the climate risk positively enhances green bond issuance through green transformation and green innovation. In addition, ownership concentration positively moderates the relationship between climate risk and green bond issuance, while managerial overconfidence negatively moderates the relationship. The effect of climate risk on green bond issuance is greater for larger firms, labor-intensive firms and firms with better environmental performance. Moreover, our research enriches green bond issuance theory, further supports the signal theory of green bonds, and provides theoretical guidance for the development of green bonds in China and other emerging market countries.
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spelling doaj-art-de46dcf47dcf4e3d9eb52a17ced4f4db2025-08-20T03:12:07ZengMDPI AGSystems2079-89542025-05-0113537710.3390/systems13050377Climate Risk, Green Transformation and Green Bond IssuanceXiaona Luo0Chan Lyu1School of Accounting, Guangzhou Xinhua University, Guangzhou 510520, ChinaSchool of Business, Macau University of Science and Technology, Macau 999078, ChinaUnder the growing threat of global warming, green bonds have become a pivotal financial instrument to deal with climate change and promote sustainable development. However, the research on the affecting factors of green bond issuance remains scarce in the existing literature, particularly regarding the external influencing factors. In order to study the impact of climate risks faced by enterprises on green bond issuance and its influence mechanism, this paper takes A-share listed companies issuing green bonds in China as samples from 1 January 2000 to 31 December 2022, adopting the Probit model to study how climate risk faced by enterprises influences green bond issuance. The key findings of the research are as follows: the climate risk positively enhances green bond issuance through green transformation and green innovation. In addition, ownership concentration positively moderates the relationship between climate risk and green bond issuance, while managerial overconfidence negatively moderates the relationship. The effect of climate risk on green bond issuance is greater for larger firms, labor-intensive firms and firms with better environmental performance. Moreover, our research enriches green bond issuance theory, further supports the signal theory of green bonds, and provides theoretical guidance for the development of green bonds in China and other emerging market countries.https://www.mdpi.com/2079-8954/13/5/377climate riskgreen bond issuancegreen transformationgreen innovation
spellingShingle Xiaona Luo
Chan Lyu
Climate Risk, Green Transformation and Green Bond Issuance
Systems
climate risk
green bond issuance
green transformation
green innovation
title Climate Risk, Green Transformation and Green Bond Issuance
title_full Climate Risk, Green Transformation and Green Bond Issuance
title_fullStr Climate Risk, Green Transformation and Green Bond Issuance
title_full_unstemmed Climate Risk, Green Transformation and Green Bond Issuance
title_short Climate Risk, Green Transformation and Green Bond Issuance
title_sort climate risk green transformation and green bond issuance
topic climate risk
green bond issuance
green transformation
green innovation
url https://www.mdpi.com/2079-8954/13/5/377
work_keys_str_mv AT xiaonaluo climateriskgreentransformationandgreenbondissuance
AT chanlyu climateriskgreentransformationandgreenbondissuance