Green Transparency and Bond Risk Premiums

In the context of the increasingly serious global environmental problems, corporate environmental responsibility and green transparency are concerned by the society and investors, it has important theoretical and practical significance to study the impact of corporate green transparency on bond risk premium. From the perspective of green transparency, this paper uses text analysis to construct green transparency index, and selects the bond issuance data of China's A-share heavily polluting enterprises from 2009 to 2023 to deeply study the impact of green transparency on bond risk premium. It is found that the improvement of green transparency of environmental polluting enterprises will reduce the bond risk premium, and the impact of green transparency on the bond risk premium is significantly different according to the nature of enterprises, different regions and environmental information disclosure policies. Further research shows that green transparency affects bond risk premium through two main channels: increasing investor confidence and reducing corporate credit risk. This study can provide reference for policy makers, enterprises and investors when making decisions.