GREEN BONDS AND CORPORATE GREEN INNOVATION

This study employs a multi-period difference-in-differences (DID) model to examine the impact of green bonds on corporate green innovation, as well as the heterogeneity and underlying mechanisms, using data from non-financial A-share listed companies in China from 2013 to 2023. The results indicate that issuing green bonds significantly promotes corporate green innovation, a conclusion that is corroborated by robustness tests. Heterogeneity analysis reveals that, compared to green medium-term notes, green corporate bonds and green enterprise bonds have a more pronounced effect on corporate green innovation. In terms of innovation types, green bonds exert a stronger influence on green invention patents than on green utility patents. From an industry perspective, non-polluting industry firms exhibit a more substantial increase in green technological innovation levels after issuing green bonds. Regarding media attention, the positive effect is more evident in firms with higher media coverage. In terms of firm ownership, state-owned enterprises demonstrate a more significant improvement. The mechanism analysis shows that green bond issuance enhances corporate green innovation by increasing R&D investment, alleviating financing constraints and reducing agency costs. Additionally, spillover effect analysis indicates that green bond issuance by one firm leads to an increase in green innovation levels among other firms in the same industry or city, suggesting a significant positive externality. This study provides a new perspective for understanding the impact of green financial instruments on corporate sustainable development.