Study On The Impact Of Carbon Price Fluctuation On The Share Price Of Thermal Power Companies From The Perspective Of Social Concern

Thermal power companies are high carbon emission companies that are mandated by the state to be included in carbon emission reduction management,in order to improve the climate environment,our state included such high carbon emission companies into the carbon emission trading market for control.And how to participate in carbon emissions trading at the same time is very important,the share price is the key indicator of the profitability of the company,so it is also crucial to achieve sustainable profitability and development of the company itself,therefore,both the carbon emission trading market and the stock market are closely related to the development of thermal power companies.With the development of news media,the public and individual investors have a fuller understanding of corporate dynamics and carbon emission related policies.Therefore,this paper takes thermal power company Y as a case study,and try to explore how the fluctuation of carbon price in Chinese carbon emission trading market will affect the company’s share price from the perspective of social concern,.First,we analyze the background of the industry in which Y is located and its own business situation;then,we collect the daily data of the 2018 to first half of 2021 on the public attention to carbon trading,i.e.,the social attention,Y’s share price and carbon price,and conduct a descriptive analysis of the comparison between the data;finally,we convert the carbon price to represent the volatility and construct a Finally,a VAR model is constructed to investigate the relationship between the three indicators.The results show that:(1)the new carbon emission policies are becoming more and more stringent for thermal power companies such as Y;(2)as a provincial thermal power company,Y’s operation,profitability and development are all on the decline,which makes the public and investors pay closer attention to it;(3)the fl uctuation of social concern is highly similar to the fluctuation of Y’s share price;there is an asymmetric relationship between social concern and Y’s share price.(4)There is an asymmetric two-way Granger causality relationship between social concern and Y companies’share price,in which social concern has a stronger influence on Y companies’ share price;(5)there is no direct correlation between the fluctuation of carbon price and Y companies’ share price,but the carbon price indirectly affects Y companies’ share price through the social concern.Combined all of the results of studies,found that the direct relationship between the fluctuation of carbon price and the share price of Y company is not obvious,and social attention can strengthen the influence between carbon price fluctuations and Y company’s share price.Based on the results of the case study of Y company,this paper proposes lots of scientific and targeted countermeasure suggestions and try to promote the sustainable development of Chinese traditional thermal power companies in the context of "emission peak and carbon neutrality",provide impetus for deeper improvement of national carbon market.