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|Title||Stock Market Reaction in Green Bonds Issue in China|
|Institution||University of Zurich|
|Faculty||Faculty of Business, Economics and Informatics|
|Abstract Text||As one of the important financial instruments in sustainable finance, the green bond has attracted great attention from investors in the capital market. Based on 146 green bonds issued from 2017-2022, this paper empirically studies the stock market reaction to green bond issuance in China with the event study and cross-sectional regression model. The results imply that the stock market responds positively to the announcement of green bond issuance. Besides, certified green bond issuers have more positive stock market responses than uncertified ones. However, the issuers located within the policy pilot area do not show a better stock market response than issuers located in other areas. These results draw attention to the importance of the information disclosure in green bond policy, as well as the effectiveness of regional incentive policy.|