| With the concept of environmental protection and sustainable development gradually gaining popularity in China,green finance,which is in a better environmental foundation,is flourishing.In order to fulfill China’s commitment to the international community to reach peak carbon emissions by 2030,China must invest approximately RMB 3 to 4trillion per year in green industries.Green stocks,however,are an important part of the green financial system and will be used as an innovative financial instrument to raise funds for low-carbon industry development projects.The emergence and advancement of green stocks plays a key role in promoting natural ecological conservation and stable economic development.While academic research in the field of green stocks is still emerging,at the practical level,investors must be able to identify green stocks with investment value.Therefore,this paper aims to contribute to the ecological protection of the country and to provide investors with a basis for assessing the investment value of green stocks so that they can profit from investing in green stocks.Based on the relevant theoretical foundation,this paper provides effective theoretical support for assessing the investment value of green stocks based on their environmental benefits,green attributes and their influencing factors.In order to construct a green stock valuation model and provide reference for investors of green stocks in China,this paper selects data related to 126 green stocks publicly issued in China from January 25,2021 to December 6,2022.This paper finds that,on the one hand,green stocks have environmental benefits compared to ordinary stocks,and their valuation will show the special characteristics of options;on the other hand,the original real option model cannot reflect the intrinsic value of green stocks dynamically.Therefore,the optimization of model parameters volatility in this paper mainly adopts the GARCH model,which makes the selection of parameters more reasonable.In order to evaluate the overall value of green stocks more realistically,this paper divides the selected cases into a pure stock part and a “green” option part,and adopts the traditional income method and the B-S option pricing model respectively.Secondly,the paper compares the valuation results from two perspectives,namely,the issuer and the holding period,and the results show that from the perspective of the issuer,the average value of the three major issuers does not differ significantly whether the traditional income approach or the B-S option pricing model is used for valuation;from the perspective of the holding period,the value of the green stock portion evaluated by the income approach increases with the extension of the holding period,while the value of the green stock portion evaluated by the B-S option pricing model increases with the extension of the holding period.increases as the holding period increases,while the value of the option component valued using the B-S option pricing model decreases.However,the market generally underestimates the overall investment value of green stocks,both from the issuer and holding period perspectives.Overall,this is a key factor for green equity investors to consider.Based on the assessment results,the main research conclusion obtained in this paper is that green stocks have large potential returns,but their investment value is greatly undervalued by the market.Based on this,this paper puts forward the following policy recommendations mainly at the investor and institutional regulation levels: first,to rationally screen green stocks with real investment value;second,to enhance awareness of green stock investment;and third,to strengthen the regulation of investor structure and market information. |
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