The Impact of Corporate Green Bond Issuance on Green Technology Innovation —— Evidence from the Guangdong-Hong Kong-Macao Greater Bay Area

Abstract

Abstract This paper uses a multi-period DID model to examine the impact of green bond issuance by listed companies in the Guangdong-Hong Kong-Macao Greater Bay Area on green technology innovation. The results show that the issuance of corporate green bonds has a positive effect on the number of green patent applications. This beneficial effect is achieved by easing financing constraints and investing more R&D funds in green technology innovation. The green technology innovation effect of green bonds issued by state-owned enterprises and enterprises in the pilot zones for green finance reform and innovations is stronger. By introducing the internal rate of return and coupon rate of green bonds into the baseline regression model, we find that green bond issuers can not only carry out green technology activities at a lower cost of capital, but also make investors willing to support green technology innovation projects at a lower return on investment. In addition, compared with enterprises that have not issued green bonds, green bond issuers can maintain stronger profitability when the annual number of green patent applications is between 0 and 6, and the growth rate of enterprise value will increase with the increase of green technology innovation.