ESG Rating Divergence and Green Bond Rremium: Evidence from China 's Bond Market

This paper examines the impact of ESG (Environmental, Social, and Governance) rating disagreement on the green bond premium, using a sample of green bonds issued by Chinese A-share listed companies from 2016 to 2023. Employing a fixed effects regression model, we find that greater ESG rating disagreement significantly reduces the green bond premium. Mechanism analyses suggest that, consistent with limited attention theory, rating disagreement increases perceived information noise and distracts investors, thereby altering their information acquisition behavior. Further heterogeneity analyses reveal that the negative effect is more pronounced among firms in heavily polluting industries and those with high media exposure. These findings underscore the critical role of ESG rating consistency in the pricing of green bonds and offer policy implications for improving ESG rating quality and enhancing regulatory frameworks in the green finance market.