How does green bond issuance affect total factor productivity? Evidence from Chinese listed enterprises

To investigate whether micro issuers can benefit from green bonds, we explore the influence of green bond issuance (GBI) on corporate total factor productivity (TFP) with a staggered DID method from 2015 to 2020. We discover a significantly positive and dynamically persistent relationship between GBI and TFP. Mechanism examinations indicate that GBI increases TFP by reducing the extent of maturity mismatch and lowering financing costs. In addition, the enhancement effect of GBI on TFP tends to be more pronounced for non-state-owned firms, non-heavily polluting ones, and enterprises located in regions with lower financial development. Moreover, whether belonging to green financial reform and innovation pilot zones does not affect the improvement impact of green bond issuance on corporate TFP. Our findings provide theoretical guidance for enterprises to improve their development quality and for the government to optimize and innovate macro policies.