Research On The Impact Of Green Innovation On Baosteel's Operating Performanc

In recent years,ecological protection has been a hot topic of discussion.as a major producer of environmental pollution,heavily polluting companies are actively exploring green transformation as the focus of environmental protection and restoration efforts,and are continuously increasing investment to promote energy conservation,emission reduction and pollution prevention.in 2006,the government announced a series of policies to promote green development,using technological innovation to support the optimisation and upgrading of the steel industry.The steel industry,as a representative of one of the heavily polluting and energy-consuming industries,has ushered in new challenges for the industry’s development.However,increased capital investment in green innovation can also have an impact on the economic efficiency of enterprises.On this basis,in order to clarify the relationship between corporate environmental protection and economic development,this paper selects Baosteel,a representative company in China’s iron and steel industry,as a research object by combing through relevant domestic and international literature as well as theories of innovation,signaling and regulation,integrating financial performance indicators through principal component analysis to analyse changes in corporate financial performance before and after green innovation,and using the event study method The cumulative abnormal return of the market share price around the date of important announcements related to green innovation is analysed as a comprehensive analysis of the impact of green innovation on Baosteel’s business performance,and then the impact path of green innovation on Baosteel’s business performance is studied from three aspects: process,product and management,to provide valuable reference for China’s steel industry or similar high energy consumption enterprises when they carry out green innovation projects.This paper finds that government regulation is an important driving force in promoting green innovation among firms.In the short term,the large amount of capital investment required to implement green innovation will increase the economic pressure on enterprises and have a negative impact on their financial performance,but in the long term,the implementation of green innovation will significantly improve enterprises’ risk resilience under environmental uncertainty.Green process innovation can improve energy efficiency,reduce pollution control costs and energy costs,and enable enterprises to obtain better economic returns,so that the business performance of enterprises shows a "U" shape trend.The final recommendation is that Baosteel should reasonably improve its absorption capacity and further improve its environmental information disclosure,while other steel companies should also carry out green innovation projects by increasing their research and development efforts and attaching importance to environmental disclosure,and adopt appropriate green innovation strategies according to their own circumstances to achieve long-term corporate development.