Research On The Motivation And Influence Of BYD Issuing Green Bonds

With the concept of green environmental protection put forward,a series of products related to "green" appeared in the capital market,such as green banks,green funds,green bonds and so on.For example,the emergence of green bonds is a supplement to China’s existing bond market.Green bond attracts investors’ attention with its own characteristics,and has become one of the debt financing tools for many enterprises,which is more and more popular in the market.As the micro subject of economy,enterprises adjust or change the existing development mode in different stages of self-development or for other reasons,carry out strategic transformation and seek new growth path.When enterprises carry out strategic transformation,they need a lot of funds to support,and it is essential to seek financing in the market.There are high requirements for financing with green bonds,such as long construction period,low rate of return and complicated project information to be disclosed.Therefore,the use of green bond financing is not the first choice of enterprises.Why do more and more enterprises want to issue green bonds in the market? On the other hand,traditional enterprises are looking for new development path in the new era.Whether the use of green bond financing can play a good role in promoting the strategic design and transformation of enterprises is worth further exploring.In this paper,BYD Company issued "18 green bonds 01" as the main analysis object,using case analysis,literature research,factor analysis and other research methods,BYD Company issued green bonds to explore the motivation,the effect of issuing green bonds and the problems existing in the issuance.Through the analysis of internal factors and external factors,the motivation of BYD to issue green bonds is determined.By comparing the market reaction before and after the issue,the company’s financial performance and capital structure changes,it is concluded that BYD’s green bond issue does bring the rise of the company’s stock price and the improvement of the overall financial performance in a short period of time,and increases the company’s green degree and improves the capital structure.At the same time,the paper analyzes the specific path of green bonds affecting corporate strategic transformation and the risk of issuing current bonds.In view of the research results,this paper puts forward some reasonable suggestions from BYD Company,other issuers and the government level,aiming to provide reference for enterprises to issue green bonds in the strategic upgrading and promote the development of green bonds.