Carbon Emissions Constraints,free Cash Flow And Investment Efficiency Of Corporation

In recent years,the environmental problems caused by the continuous emission of greenhouse gases that caused global warming have been deteriorating,and government regulations on corporate carbon emissions have become increasingly severe.In November 2009,the Chinese government clearly put forward carbon emission reduction targets.In October 2011,the government implemented pilot carbon emission trading projects in seven provinces.In December 2017,the National Development and Reform Commission made it clear that it started the national carbon emissions trading system with the power generation industry as the breakthrough.This series of measures shows that carbon emission reduction has become a rigid constraint standard for business operations.Based on this background,companies as the main carbon emitters,whether or not they are willing to assume carbon emission reduction responsibilities,their investment behavior will also be subject to restrictions on carbon emissions constraints.The existing studies on carbon emission reduction at home and abroad mostly focus on the macro level,such as industrial structure optimization,energy utilization efficiency,etc.There is relatively little research on the micro effects of carbon emission reduction.This paper hopes that the research on carbon emission reduction constraints and corporate investment efficiency can prompt listed companies to focus on carbon emission reduction issues,actively fulfill their carbon emission reduction responsibilities,and increase their investment efficiency.At the same time,it is hoped that enterprises can continuously optimize and adjust the company's capital allocation to promote better development of the industry.This paper integrates information asymmetry,principal-agent,stakeholders,and environmental regulation and other relevant theories,theoretical analyzed the relationship between carbon emission reduction constraints,free cash flow and corporate investment efficiency,and used the empirical evidence to test the above relationship.In this paper,we take the listed companies of A-share high-energy-consuming industries as samples from 2013 to 2016,then used SPSS19.0 statistical software to conduct empirical analysis of relevant data to test carbon emission constraints,free cash flow,and investment efficiency,and the effect of different property rights on the relationship between carbon emission reduction constraints,free cash flow,and corporate investment efficiency.Based on the empirical analysis,we conclude that:(1)The more free cash flow that the companies have,the more serious of the over investment,the shortage free cash flow,and the worse is the under investment;the restriction of carbon emission reduction curbs the over-investment of enterprises,but aggravates the under-investment of enterprises.(2)The carbon emission reduction constraint restrains the excessive investment caused by the company's free cash flow and aggravates the insufficient investment caused by the shortage of free cash flow.(3)The effect of carbon emission reduction constraints on suppressing excessive investment caused by state-owned enterprises' free cash flow is weaker than that of non-state-owned enterprises,and the carbon emission reduction constraint eased the under-investment caused by the free cash flow of state-owned enterprises,but aggravated the underinvestment caused by the free cash flow of non-state-owned enterprises.Therefore,this paper proposes reasonable suggestions from the aspects of improving carbon emission reduction policies,increasing the carbon emissions investment and financing system,and improving the enterprises' own emission reduction capabilities,and points out the limitations of this paper and the directions of future research.