Sustainable Finance, Green Bonds and Financial Performance—A Literature Review

The growing relevance of sustainable finance has positioned green bonds as central instruments in debates on how capital markets can contribute to climate transition while creating value for firms. This article conducts a literature review to examine the relationship between green bond issuance, corporate financial performance, and the cost of debt. Using the PRISMA 2020 protocol, 59 articles published between 2019 and 2025 were identified and classified according to study type, methodological approach, analytical technique, sectoral and geographic focus, and performance indicators. A bibliometric analysis was also performed to map publication trends, research clusters, and thematic evolution. The results indicate a fragmented but expanding field, with most studies concentrated in developed markets, especially Europe, the United States, and China, and limited evidence from emerging economies. Empirical findings converge on modest but heterogeneous financial benefits, frequently reflected in the so-called “Greenium,” typically ranging between 1 and 63 basis points. Accounting-based effects on profitability (ROA, ROE) remain mixed, while econometric/regression, panel analysis and event studies dominate the empirical landscape. The paper’s incremental contribution lies in consolidating these quantitative insights into a reproducible classification framework that enables systematic comparison between developed and emerging markets, supporting future research on long-term financial and sustainability outcomes.

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Publication Details

Journal
International Journal of Financial Studies
Published
2025-12-04
DOI
https://doi.org/10.3390/ijfs13040233
Citations
2
Primary Topic
Sustainable Finance and Green Bonds
Type
article
Field-Weighted Citation Impact
4.42
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article

Sustainable Finance, Green Bonds and Financial Performance—A Literature Review

Ludmila de Melo Souza, Herbert Kimura, Roberto Rodrigues Loiola
2 citations
International Journal of Financial Studies
Sustainable Finance and Green Bonds
4.42
article

Sustainable Finance, Green Bonds and Financial Performance—A Literature Review

Ludmila de Melo Souza, Herbert Kimura, Roberto Rodrigues Loiola
article en
2 citations

Abstract

The growing relevance of sustainable finance has positioned green bonds as central instruments in debates on how capital markets can contribute to climate transition while creating value for firms. This article conducts a literature review to examine the relationship between green bond issuance, corporate financial performance, and the cost of debt. Using the PRISMA 2020 protocol, 59 articles published between 2019 and 2025 were identified and classified according to study type, methodological approach, analytical technique, sectoral and geographic focus, and performance indicators. A bibliometric analysis was also performed to map publication trends, research clusters, and thematic evolution. The results indicate a fragmented but expanding field, with most studies concentrated in developed markets, especially Europe, the United States, and China, and limited evidence from emerging economies. Empirical findings converge on modest but heterogeneous financial benefits, frequently reflected in the so-called “Greenium,” typically ranging between 1 and 63 basis points. Accounting-based effects on profitability (ROA, ROE) remain mixed, while econometric/regression, panel analysis and event studies dominate the empirical landscape. The paper’s incremental contribution lies in consolidating these quantitative insights into a reproducible classification framework that enables systematic comparison between developed and emerging markets, supporting future research on long-term financial and sustainability outcomes.

International Journal of Financial StudiesVol. 13(4)
Universidade de Brasília (BR)
Openalex Percentile: Top 5%
Sustainable Finance and Green Bonds
4.42
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