Analysis Of The Influence Mechanism Of Carbon Emission Reduction Policy On Enterprise Value

With the increasing negative impact of the climate issue on human production and life,China has made controlling carbon emissions the core task of addressing the climate issue,and has made great efforts to this end.In recent years,a large number of carbon emission reduction policies have been announced,which shows China’s commitment and determination to achieve sustainable development.The capital market plays an important role in promoting the process of “carbon emission reduction” for its allocation function of funds and resources.However,our country is still in the primary stage of carbon-emission-reduction field with a low level of carbon emission governance.Although China has given high policy support to sustainable development and ecological civilization construction,the actual effect of the policy is often difficult to predict.Therefore,it is necessary to explore the relationship between carbon emission reduction policy and capital market,especially between carbon emission reduction policy and enterprise,which is important participant in capital market.This paper first explores the impact of carbon emission reduction policy on enterprise value.Based on event study method and OLS method,this paper tests the short-term and long-term impact of 7 carbon emission reduction policies announced from 2016 to 2021 on the value of 123 A-share listed corporates in carbon-emissionreduction field.The results show that the carbon emission reduction policy has a negative impact on enterprise value in the short term,but a positive impact in the long term.Furthermore,referring to domestic and foreign studies,this paper proposes that carbon emission reduction policy affects enterprise value through influencing government environmental regulation and enterprise green innovation,and then verifies these two influencing mechanisms.The results show that carbon emission reduction policy can affect enterprise value by strengthening government environmental regulation and promoting enterprise green innovation.However,the government environmental regulation mechanism is effective in both the short and long term,while the enterprise green innovation mechanism is only effective in the long term.In order to explore whether there are differences in the effects of carbon emission reduction policy under different subsamples,this paper then analyzes the regional heterogeneity and property rights heterogeneity of the two influence mechanisms mentioned above.Comparing the areas with high and low public environmental protection demand,the results of regional heterogeneity analysis show that the public environmental demand can strengthen the government environmental regulation mechanism,but has no significant effect on the enterprise green innovation mechanism.Comparing the state-owned enterprises and private enterprises,the results of property rights heterogeneity analysis show that the stateowned property rights can strengthen both the government environmental regulation mechanism and the enterprise green innovation mechanism.This paper analyzes the above conclusions,and puts forward suggestions for the government,the enterprise and the public.The government should speed up the green system construction,strengthen the environmental regulation of enterprises,promote the improvement of enterprises’ ability of carbon emission reduction,so that enterprises can overcome the rising cost result from the announcement of carbon emission reduction policies and balance their own value enhancement and long-term development as soon as possible.The enterprises should establish the concept of low-carbon operation,actively layout in the low-carbon field including green innovation,and focus on long-term production and operation efficiency improvement.The public should cultivate environmental awareness and pay close attention to the capital market and related field to play a good role in supervising the government and enterprises.Government,enterprises and the public should also pay attention to the imbalance in the regional and property rights of policy effects and take measures to improve them.