The Impact of Green Bond Issuance on Corporate Risk-Taking: A Corporate Governance and Green Innovation Perspective

Growing global awareness of climate change and environmental protection has fueled the rapid expansion of the green bond market. Building upon a theoretical framework that links green bond issuance with corporate governance and green innovation effects, this study employs a sample of Chinese A-share listed firms from 2014 to 2022 and applies a staggered difference-in-differences (DID) approach to empirically examine the impact of green bond issuance on corporate risk-taking and the underlying mechanisms. The results indicate that green bond issuance significantly reduces firms’ risk-taking levels. This effect operates primarily through three channels: increasing agency costs, enhancing information transparency, and exacerbating structural imbalances in green innovation. Furthermore, the risk-mitigating effect of green bonds is more pronounced in state-owned enterprises, firms with low audit quality, and firms operating in heavily polluting industries. These findings offer important implications for accelerating the diversification of China’s green financial system, improving firms’ risk management capabilities, and fostering the development of green productivity.