The Research On The Motivations And Effects Of Green Bonds Financing For Xinxing Pipes

With the rapid development of the economy,the problems of excessive consumption of resources and the deterioration of the ecological environment have become more and more serious.Many countries in the world have realized that the way to sustainable development is to develop a low-carbon economy and promote the flow of funds to environment-friendly projects.The proposal of "carbon peaking and carbon neutrality goals" in 2020 and the implementation of comprehensive carbon reduction actions also showed China’s determination to vigorously promote the transformation of traditional industries to green industries.The traditional iron and steel industry is a basic industry with high pollution and high energy consumption,so the green transformation is imperative for it.Green bonds not only provide financial support for the green transformation and development of enterprises,but also meet the diversified investment needs of investors,and play an exemplary role in leading the concept of social green development.So,by studying the motivations and effects of green bonds financing for Xinxing Pipes,this paper not only provides a reference experience for other iron and steel enterprises planning to issue green bonds,but also provides a case basis for the improvement of institutions related to green bonds,which is helpful to further promote the low-carbon transformation and high-quality development of iron and steel enterprises.Using the case study method,this paper selects Xinxing Ductile Iron Pipes Co.,Ltd.as the research object.First,this paper combs and introduces the related concepts,theoretical basis and the evaluation methods of the financing effects.Then,the case company is introduced.This paper connects corporate green bonds financing with green development and environmental governance,and analyzes the motivations of issuing green bonds.Besides,this paper uses the financial and non-financial indicators of the company from 2017 to 2021 and adopts the event study method,the comparative analysis method and the EVA analysis method to study the market reaction,financial performance and environmental performance of the company before and after green bonds financing,so as to explore the effects of green bonds financing for Xinxing Pipes.Through the research,this paper draws the following conclusions:First,there are external and internal motivations for green bonds financing.The external motivations are mainly the development of the green bonds market,relevant support of the policies and the need of green transformation of the iron and steel enterprises.The internal motivations are mainly to expand financing channels,solve capital needs,improve debt structure and reduce financing costs.Second,green bonds financing can bring positive impact to enterprises,but the impact is limited.In terms of market reaction,the issuance of green bonds can cause short-term and positive changes in stock price,but has no significant impact on the overall stock price trend of the company.In terms of financial performance,issuing green bonds can improve the profitability,debt paying ability,growth ability and economic value added of enterprises.In terms of environmental performance,the funds raised by green bonds are used to invest in green projects,which can help enterprises save energy and reduce emissions.In general,green bonds financing by enterprises can produce certain positive effects,and qualified enterprises should actively make good use of green bonds financing tools.Based on the above research,this paper puts forward suggestions on the standardized development of the green bonds market and the improvement of corporate financing effects from two levels of the government and enterprises:the government should strengthen the regulation of the green bonds market,formulate fiscal and tax policies to encourage the development of green projects,and encourage diversified subjects to participate in green bonds financing;Enterprises should choose financing methods reasonably according to their own conditions,attach importance to the information disclosure of the bonds and establish risk management mechanisms.