The Influence Of Business Risk On Investment Of Renewable Energy Enterprises

The continuous rise in temperature has broken the balance of the original ecosystem,resulting in the melting of polar glaciers,the frequent occurrence of extreme weather,the degradation of soil quality and the weakening of ecological immunity,posing a serious threat to the survival and safety of humanity.Renewable energy has advantages in carbon reduction because of its green and clean characteristics.It is an important weapon to deal with the climate crisis,so renewable energy investment needs to increase.However,in recent years,China has gradually reduced subsidies for renewable energy and advocated market-oriented management.Renewable energy enterprises have to face the challenges of the market alone,and business risk gradually increases.In addition,COVID-19 has changed the international situation,the uncertainty of the economic environment has increased.Renewable energy enterprises have greater business risk.Therefore,this paper mainly analyzes the impact of business risk on the investment of renewable energy enterprises.Using data of 138 Chinese A-listed renewable energy enterprises from 2007 to2020,this paper adopts systematic GMM method to analyze the relationship between business risk and investment of renewable energy enterprises.In this paper,the investment of renewable energy is divided into two aspects: investment scale and investment efficiency.First,this paper studies the impact of business risk on renewable energy investment scale and renewable energy investment efficiency respectively.Then,this paper examines the impact of government subsidies on the relationship between business risk and investment scale and investment efficiency of renewable energy enterprises.Finally,the paper analyzes the differences between the business risk and the investment relationship of renewable energy enterprises with different scales and different ownership.This paper draws the following conclusions:(1)Business risk has a negative impact on the renewable energy investment scale.While business risk has a positive impact on the renewable energy investment efficiency.(2)Government subsidies has a positive moderating effect.With the increase of government subsidies,the negative effect of business risk on the renewable energy investment scale will be weakened,and the positive effect of business risk on the renewable energy investment efficiency will be enhanced.(3)The negative effect of business risk on the renewable energy investment scale only exists in state-owned enterprises and small enterprises.However,the positive effect of business risk on the renewable energy investment efficiency exists in non-state-owned enterprises and small enterprises.Based on the above results,this paper suggests:(1)Renewable energy enterprises should reasonably control their own business risks,establish a sound risk control and management system to detect and prevent potential risk factors as soon as possible.(2)Renewable energy enterprises should improve the transparency of management to facilitate the discovery of risks generated in the business process and reduce the possibility of inefficient investment behaviors of enterprise managers.(3)Government departments should prudently formulate subsidy policies for renewable energy,carry out strict examination and investigation on renewable energy enterprises applying for subsidies,and carefully supervise the rational application of subsidies for renewable energy enterprises.(4)In order to create a favorable environment for the development of renewable energy enterprises,the government should give full play to its policy advantages and deal with the risk factors in the market in time.So as to promote the construction of renewable energy industry investment effectively.