The Impact of Debt on Corporate Efficiency. Analysis of Industry Features

Nowadays, there is an increased interest in the green bond market, its impact on the financial performance of corporations. One of the reasons is the global awareness of executives and investors in preserving the environment and following ESG principles. The green bond market began to develop rapidly, including developing countries, after the signing of the Paris climate agreement. This work contributes to the study of the influence of the level of debt with a bias on the issue of green bonds on the corporate performance of companies in various sectors of the economy. This dissertation used data on 118 companies from various industries and countries, including 17 companies issuing green bonds in the period from 2013 to 2017. The study evaluated the impact of debt levels on various indicators of corporate performance. The results show that bond issuance has a positive effect on corporate performance. In addition, the relationship between debt levels and corporate performance is described in a non-linear way (in the form of parabola). Moreover, during the testing of green bond issues, it was shown that the issue of green bonds has a more positive impact on corporate efficiency than the issuance of traditional types of bonds and the growth in the share of green financing in the amount of the company’s debt has a positive effect on the company’s performance.