This paper examines the effect of green bond issuance on firms' climate risk concerns from 2011 to 2020. First, we propose four ratios of climate risk concerns, which are transition risks, acute physical risks, chronic physical risks, and climate-related opportunities by using text mining techniques. Second, we find that the climate risk concerns increase for most firms after the issuance of green bonds. Finally, to eliminate the endogeneity, we adopt propensity score matching (PSM) and difference-in-difference (DID) analysis to indicate that after the issuance of green bonds, firms pay more attention to climate risks. Our results provide insights and implications for policy makers and regulators.
- Acute physical risks
- Chronic physical risks
- Climate-related opportunities
- Green bond issuance
- Transition risks