Do green bonds have an advantage in information disclosure?

This study examines the rapid development of China's green bond market by leveraging semisupervised machine learning and text analysis methods. Using data on green bonds issued in mainland China from 2016 to 2021, the analysis highlights key differences in innovation disclosure between green and conventional bonds. Findings show that green bonds disclose green information-related at significantly higher levels—by 15 %—compared with conventional bonds, indicating a clear disclosure advantage. This advantage is notably stronger in bonds with third-party green certifications and a higher proportion of green project investments, underscoring the critical role of green attributes in shaping disclosure practices. The study further identifies heightened disclosure in bonds issued by nonstate-owned enterprises, firms operating in regions with supportive green bond policies, heavily polluting industries, and areas with more advanced financial development. Economic consequence tests reveal that enhanced green information disclosure positively impacts excess stock returns, reduces information asymmetry, and increases investor attention. These findings provide valuable insights for refining the institutional framework of the green bond market and advancing the development of a robust green financial system.