Study On The Impact Of Green Bond Issuance On Shareholder Income

With the development of economy and science and technology,the phenomenon of environmental pollution has become a common concern of all countries in the world.Global warming has become one of the biggest challenges to social development.In the context of promoting sustainable development and actively responding to the Paris Agreement,countries all over the world actively reduce greenhouse gases,save and use non-renewable resources,and put forward the goal of "double carbon",namely carbon peak and carbon neutrality.At present,more than 50 countries in the world have realized the turning point of carbon dioxide emissions from growth to decline.China has also committed to stop the continuous growth of carbon dioxide emissions before 2030,and to offset its own carbon dioxide emissions through afforestation,energy conservation and emission reduction,so as to achieve carbon peak and carbon neutrality.Based on this,the most important thing to achieve carbon neutrality and carbon peak is to establish a sustainable green finance system,which can promote the economic development of green projects while preventing pollution.Green finance system promotes sustainable development of economy,but it is also an inevitable requirement of economic transformation in our country,which is a new concept of financial theory and financial practice.In terms of green finance,there are many estimates of the capital demand for carbon peaking and carbon neutrality,but the scale is 100 trillion,and the scale of capital needed to achieve carbon peaking and carbon neutrality is very huge.Green bonds not only have long maturity and stable price,but also can solve the problems faced by the development of various green financial instruments: for example,financing is difficult and expensive for enterprises,which helps to expand the business space of financial institutions and meet the investment needs of responsible investors.Domestic and foreign scholars have done a lot of research on the status quo,sustainable development and pricing of green bonds.However,at the academic level,the existing research has not analyzed the impact of green bond issuance on shareholders’ returns.This paper further understands green bonds through vertical and horizontal--stock price effect and financial effect,provides a new perspective for green bond related research,and improves the framework of the theoretical system of green financial bonds.In this paper,from the perspective of stock price effect in vertical time order,the event study method and the modified CAPM model are used to estimate the abnormal returns of enterprises in a certain period of time,and the reaction of enterprises’ stock market to their respective issuance of green bonds is evaluated,so as to study the impact of green bond issuance in the stock market on shareholders’ returns,which is the first step of the longitudinal study.However,since only the enterprises studying green bonds may have other factors not taken into account,further empirical test is needed.Secondly,by horizontal comparison,the public utility enterprise that only issues ordinary bonds is compared with the enterprise that issues green bonds.The ROE of the company before and after the issuance of green bonds and ordinary bonds is analyzed by DID differential method and tested,so as to judge the impact of green bond issuance on shareholders’ income in terms of financial effect.The interference of other factors in the stock price effect on the results is avoided.Finally,specific policy suggestions are put forward based on the conclusions of the above two empirical studies,so as to more effectively encourage and guide enterprises to issue green bonds and encourage investors to invest in the green finance market,especially green bonds.In the end,enterprises can promote the development of green finance,ecological civilization construction and high-quality economic development while improving their own stock price returns.In this paper,the event study method is adopted and through testing,it is concluded that most of the cumulative abnormal returns of green bonds are positive,indicating that the issuance of green bonds has a significant positive impact on shareholders’ returns in terms of stock price effect.The different-difference method is adopted to conclude that green bonds can indeed promote the performance growth of enterprises.After passing the parallel trend test,PSM-DID and placebo test,it is finally confirmed that the positive effect obtained in this paper is due to the event of "issuing green bonds",rather than other reasons.Thus the results of this paper are confirmed to be credible.According to the empirical results,it provides empirical support for enterprises to issue green bonds.Based on the results,targeted policy suggestions are put forward from the level of government,company and individual investors.