This paper examines the impact of corporate green bond issuances on equity analysts’ forecasts. Using a global sample of listed companies from 40 countries, we find that the issuance of a firm’s first green bond is associated with improved analyst forecast accuracy and reduced analyst forecast dispersion. Post-issuance, issuers attract greater attention from analysts, media, and institutional investors. Information disclosures throughout a green bond’s lifecycle are crucial, since the improvement in analyst forecast accuracy is particularly accentuated for firms offering greater accessibility to green finance information. Collectively, our findings demonstrate that green bond issuances enhance the information environment of issuing firms and emphasize the financial relevance of nonfinancial disclosures.
