Green Bond and Corporate Maturity Mismatch : An Evidence from China

The maturity mismatch problem is prevalent in the field of investment and financing of enterprises, and with the rise of green bonds, there is much attention to whether the issuance of green bonds can alleviate this problem. This paper uses the related sample data of listed companies in China from 2015 to 2021 to empirically test the impact of green bond issuance on corporate maturity mismatch. The results confirm that the issuance of green bonds can significantly alleviate the corporate maturity mismatch both at the beginning of the issuance and in the long-term. We also find that this alleviation effect is played by deepening their long-term investment intentions and reducing the degree of their financing constraints. In addition, the heterogeneity analyses find that companies with high ESG ratings and companies that do not issue green bonds for the first time have a stronger inhibitory effect on maturity mismatch. Our research focus on the impact of green bond issuance on corporate debt maturity, which can also provide an explanation for why the growth of green bond is rapid in China's market