Study On The Stock Price Effect And Performance Change Of Carbon Neutral Bonds Issued By Electric Power Enterprises

The report of the 20th National Congress of the Communist Party of China proposed new ideas,new ideas,and new measures to guide the "dual carbon" work.China’s green bond market has developed rapidly in recent years;Electric power enterprises are also accelerating the construction of new power systems with new energy as the main body.How to make good use of green bonds as a market regulation tool in the new journey of parallel environmental protection and economic development is worth deeply exploring for power enterprises in the process of transformation and upgrading.This paper takes the five power generation enterprises listed in Hong Kong as the research object,adopts the event research method,principal component analysis method and regression analysis to study the stock price effect of carbon neutral bonds issued by power enterprises,and analyzes whether the investor choice behind them can be transmitted to the performance.First of all,summarize the development status of carbon neutral bonds in China and sort out the relevant literature.By defining the relevant concepts and studying the theoretical basis,we can determine the research ideas of this paper.Secondly,based on theoretical analysis and empirical research,this paper analyzes the stock price effect and performance changes of carbon-neutral bonds issued by power generation enterprises.According to the theory of information asymmetry,investors often pay high information cost to know the information of the company;according to the effective market hypothesis,the various behaviors of power enterprises in the capital market and the information related to the operation of the company will be reflected in the stock price;According to the signal theory,the issuance of carbon neutral bonds marks a favorable investment opportunity;according to the corporate social responsibility theory,the issuance of carbon neutral bonds can enhance the reputation and image of the company and gain investor support to increase the stock price and value of the company;finally,the stock market responds positively to the issuance of the carbon neutral bonds;from the perspective of corporate social responsibility theory and stakeholders,the issuance of carbon neutral bonds can improve the financial performance.As the empirical results show that the stock price is significantly positively correlated with the stability test of the normal mean model,the stock price effect is also different among the power enterprises issuing carbon neutral bonds.The fossil energy has a relatively high proportion and the initial stock price effect of carbon neutral bonds is relatively weak,and the China Resources Power has the strongest stock price effect.This paper also uses the principal component analysis method and the fixed effect model to find that the issuance of carbon neutral bonds can improve the financial performance of power enterprises.From the stock price effect with a short duration to the financial performance with a long disclosure time interval,the consistency of the two conclusions shows that investors’ positive response to the stock price of carbon neutral bonds issued by power enterprises is rational,which can be transmitted to the performance of power enterprises.Finally,in view of the empirical results,this paper puts forward suggestions for issuing carbon neutral bonds from the perspective of power enterprises,financial regulators and investors.Electric power enterprises can help low carbon transformation,by increasing carbon neutral bonds,build corporate green image to maximize the positive price effect,also can also strengthen the internal information management,optimize the information disclosure system,establish risk assessment mechanism and make plan to control the green bonds as much as possible the share price fluctuations,issuing carbon neutral bonds can also promote electric power enterprise performance improvement;Financial regulators need to cultivate professional investors of carbon neutral bonds,and improve the positive incentives and negative constraints of investment and financing of carbon neutral bonds;investors themselves also need to cultivate green investment concepts and learn relevant knowledge.