Research On The Impact Of Issuing Green Bonds On Enterprise Value Of Environmental Protection Enterprises

With the proposal of "Carbon peaking and carbon neutrality",green finance in China has entered a new stage of rapid development,and various green financial tools such as green bonds,green insurance,and green credit are gradually playing a vital role.Among them,green bonds have developed rapidly in recent years and have become an important representative of green financial tools.The business characteristics of environmental protection enterprises are highly consistent with the "green" attributes of green bonds,and green bonds are expected to become an important financing tool for environmental protection enterprises.In the current situation where China attaches more and more importance to balancing economic development and environmental protection,it is significant to analyze the influence of green bond financing issued by environmental protection enterprises on enterprise value.This paper selects Chengdu Xingrong Environment Co.,Ltd.,an environmental protection enterprise that issued the first green corporate bond through public offering in Sichuan,as the research object.After introducing the development and financing status of the environmental protection industry and the basic situation of Xingrong Environment and its green bond issuance,this paper first analyzes the impact of environmental protection enterprises issuing green bonds on enterprise value by using multiple linear regression method.Then,the specific case study is conducted to analyze the motivation of green bond issuance by Xingrong Environment.Through event study analysis,the short-term changes in its enterprise value before and after the issuance of green bonds are analyzed.Tobin Q value and EVA are selected to analyze the long-term changes in its enterprise value from two aspects,and further explore the impact path of issuing green bonds on the value of environmental companies.This paper draws the following conclusions from the study: First,the issuance of green bonds by environmental protection enterprises helps to increase enterprise value.Second,the motives for Xingrong Environment to issue green bonds include the following three aspects: responding to China’s current policy call;improving its debt structure;and reducing its financial pressure.Third,this paper analyzes the impact of green bonds issued by Xing Rong Environment on enterprise value from three aspects:market effect,Tobin Q value and EVA,and the results show that the issuance of green bonds by Xingrong Environment can have a positive impact on both its short-term and long-term enterprise value.Fourth,the issuance of green bonds by environmental protection enterprises can affect enterprise value through three paths: reducing financing costs,improving profitability,and obtaining the green reputation.