Carbon Trading Systems And Corporate Value

Greenhouse gas emissions are an important issue in the current development of countries around the world,and carbon dioxide is the most important greenhouse gas.Data show that China has become the world’s largest carbon emitter in 2006,and China’s CO2 emissions in 2021 will exceed 11.9 billion tons,accounting for 33% of the world total.In order to effectively control greenhouse gas emissions and explore low-carbon development models,China began to gradually establish a carbon emissions trading system in 2011,and all seven pilot projects in Beijing,Tianjin,Shanghai,Chongqing,Hubei,Guangdong and Shenzhen officially began trading in 2014.In order to achieve the goal of "double carbon" and green sustainable development,the national carbon emission trading market will be officially launched in 2021.Therefore,studying the impact of carbon emissions trading system on the financial value and market value of enterprises can help us better understand its impact on the value of micro-entities,and it is of great practical significance to further improve and develop the carbon emissions trading market.This paper uses the fully implemented carbon emission pilot policy in 2014 as a quasi-natural experiment to explore the impact of carbon emission trading system on both financial value and market value of enterprises using data of A-share listed companies from 2011-2021.Specifically,this paper first uses a double difference model to explore the impact of the carbon emissions trading system on the financial value and market value of firms and conducts a parallel trend test to see whether the premise assumptions of the double difference model are satisfied,and then does a placebo test with low carbon emission firms,a robustness test by reducing the sample time to after the implementation of the policy and replacing the explanatory variables,and a robustness test by lagging the control variables by one order to avoid endogeneity The question is asked whether the findings are still consistent and stable.Second,the heterogeneity of the impact of the carbon trading system on the financial value and market value of firms is investigated in five aspects,including firm ownership,firm size,firm establishment,gearing and social responsibility.Again,a mechanism analysis is conducted to investigate whether the carbon emissions trading system affects corporate financial value and market value by affecting corporate social responsibility as a mediating variable,and then a robustness test is conducted to see whether the "carbon emissions trading system-social responsibility-firm value " path is consistent and stable.Finally,the impact of carbon emissions trading price on the financial value and market value of enterprises is further explored,and based on the empirical results,policy recommendations are given to promote the better development of carbon emissions trading market in the context of "dual carbon".This paper finds that:(1)carbon emissions trading system affects the financial value and market value of enterprises through both direct and indirect aspects.On the one hand,carbon emissions trading system can directly increase the financial value and market value of enterprises;on the other hand,carbon emissions trading system will increase the social responsibility of enterprises,and increase the financial value and market value of enterprises through improving the social responsibility of enterprises.(2)The impact of carbon emissions trading system on the financial value and market value of enterprises is heterogeneous: first,in terms of ownership,carbon emissions trading system has a positive effect on the market value of both state-owned enterprises and private enterprises,and has a positive effect on the financial value of state-owned enterprises,but not significantly on the financial value of private enterprises;second,in terms of enterprise size,the positive effect of carbon emissions trading system on the market value of large enterprises is significantly higher than that of small companies.However,the financial value of enterprises is not affected by the carbon trading system;thirdly,in terms of company establishment,the positive effect of the carbon trading system on the market value of enterprises with low company establishment is significantly higher than that of enterprises with high company establishment,but in terms of the financial value of enterprises,the carbon trading system has a significant positive effect on enterprises with high company establishment and no effect on enterprises with low company establishment;fourthly,in terms of company establishment,the positive effect of the carbon trading system on the market value of enterprises with low company establishment is significantly higher than that of enterprises with high company establishment.Fourth,in terms of corporate gearing,the carbon trading system increases the value of firms with low gearing,but has no effect on the value of firms with high gearing.Fifth,in terms of corporate social responsibility,the carbon trading system positively contributes to the value of firms with high social responsibility,but has no effect on the value of firms with low social responsibility.The contributions of this paper are mainly in the following aspects: first,this paper studies the impact of carbon emission trading system on the financial value and market value of enterprises,which is a useful supplement to the research on carbon emission trading system and corporate value;second,this paper divides corporate value into financial value and market value,and deeply studies the impact of carbon emission trading system on corporate value,which makes up for the theoretical mechanism of carbon emission trading system affecting corporate value Thirdly,this paper takes corporate social responsibility as a mediating variable and analyzes its specific impact on financial value and market value,so as to explore the path of carbon emission trading system affecting corporate financial value and market value,which can promote the development of national carbon emission trading market in a more targeted way and better help to achieve the "double carbon" goal.The goal is to promote the development of the national carbon emissions trading market and to better achieve the "double carbon" goal.