The Impact Of Green Governance On Corporate Financial Performance Under The New Development Concept

In the context of economic globalization,China’s economy has made significant progress,but it has also brought about increasingly serious environmental problems.The report of the 20 th National Congress of the Communist Party of China proposes that nature is the fundamental condition for human survival and development.To comprehensively build socialism,we need to establish and practice the idea that "green waters and green mountains" are "golden mountains and silver mountains".Starting from the relationship between humans and nature,we should respect nature,comply with nature,protect nature,vigorously promote green development,achieve harmonious coexistence between humans and nature,and build a beautiful China.From the perspective of modern green management,how enterprises seek a win-win situation between economy and environment in the context of a green economy has become a hot issue in the development of the times.The automotive industry is a major key industry in China,but its economic development often has a serious impact on the environment.Whether in the manufacturing or use of automobiles,there are problems of high pollution,high consumption,and high emissions.The industry urgently needs to implement green governance measures to achieve a win-win situation of economy and environment.But in the process of protecting the environment,the economic development of the enterprise itself cannot be ignored.BYD is a representative enterprise in China and actively engages in green governance.Therefore,this article chooses BYD as a case company to study the impact of green governance on financial performance under the new development concept.This paper takes BYD as a case study company.On the basis of relevant concepts and theories,this paper deeply studies the basic situation of BYD,analyzes the measures and effects of corporate green governance based on the four dimensions of architecture,mechanism,efficiency and responsibility,and analyzes the financial performance of BYD in green governance by using the event study method,financial indicator analysis method and EAV value analysis method.After analysis,it was mainly found that although BYD has implemented multiple green governance measures,it has had some negative impacts on financial performance: short-term performance has not resulted in sustained and effective profit results.Profitability is greatly affected by negative factors such as market policies,and the risk of debt repayment is increasing year by year.Asset liquidity is insufficient,debt scale is too large,inventory liquidity is weak,and there is a risk of bad debts.The efficiency of operating assets needs to be improved.The fluctuation of economic value added is significant,and the overall situation shows a negative trend.This article proposes the following suggestions for BYD’s green governance performance issues: correctly establishing and promoting development concepts,strengthening green innovation and management capabilities,increasing social responsibility and reasonable utilization of relevant policies and regulations,avoiding excessive reliance on the government and market,and ensuring a reasonable production and operation structure.