TY - JOUR
T1 - Unleashing Fintech's potential
T2 - A catalyst for green bonds issuance
AU - Huang, Jin
AU - Liu, Ruiqi
AU - Wang, Wenting
AU - Wang, Zi'ang
AU - Wang, Congwei
AU - (Jimmy) Jin, Yong
N1 - Publisher Copyright:
© 2024 The Authors
PY - 2024/6
Y1 - 2024/6
N2 - Financial technology, also known as fintech, is transforming daily lives and revolutionising the financial industry. However, there is currently no consensus regarding the effect of fintech on the green bond market. Using novel Chinese data, this study provides robust evidence that fintech development can significantly boost green bond issuance. Further analysis suggests that this promotional effect occurs by empowering intermediary institutions and increasing social environmental awareness. Additionally, we investigate the heterogeneous effect and find that the positive relationship is more pronounced for bonds without high ratings and whose proceeds are not used for refinancing. This effect is also stronger for non-state-owned issuers and in cities connected with High-Speed Railway networks or located in the eastern region of China. These results call for attention from policymakers and security managers to take further notice of fintech utilisation in green finance products.
AB - Financial technology, also known as fintech, is transforming daily lives and revolutionising the financial industry. However, there is currently no consensus regarding the effect of fintech on the green bond market. Using novel Chinese data, this study provides robust evidence that fintech development can significantly boost green bond issuance. Further analysis suggests that this promotional effect occurs by empowering intermediary institutions and increasing social environmental awareness. Additionally, we investigate the heterogeneous effect and find that the positive relationship is more pronounced for bonds without high ratings and whose proceeds are not used for refinancing. This effect is also stronger for non-state-owned issuers and in cities connected with High-Speed Railway networks or located in the eastern region of China. These results call for attention from policymakers and security managers to take further notice of fintech utilisation in green finance products.
KW - Environmental awareness
KW - Fintech
KW - Green bonds
KW - Intermediary environment
UR - http://www.scopus.com/inward/record.url?scp=85193621460&partnerID=8YFLogxK
U2 - 10.1016/j.intfin.2024.102009
DO - 10.1016/j.intfin.2024.102009
M3 - Article
AN - SCOPUS:85193621460
SN - 1042-4431
VL - 93
JO - Journal of International Financial Markets, Institutions and Money
JF - Journal of International Financial Markets, Institutions and Money
M1 - 102009
ER -