The Impact Of Carbon Neutrality Bonds On Corporate Value

In recent years,as China’s economy has shifted towards high-quality development,the government has gradually increased its focus on environmental issues such as carbon emissions.In September 2020,Xi Jinping told the 75 th session of the UN General Assembly that China would increase its national autonomous contribution,adopt more vigorous policies and measures,and strive to peak carbon dioxide emissions by 2030 and work towards achieving by 2060 "carbon neutral".To further implement the relevant policy requirements and support the green recovery and low-carbon transition after the epidemic,the Institute of Traders has launched an innovative carbon neutral bond under the Green Debt Financing Instrument,which was officially issued in February 2021.This paper studies the impact of issuing carbon neutral bonds on corporate value,which will help enterprises to enhance their intrinsic motivation to issue carbon neutral bonds and provide a reference basis for their participation in the development of the carbon neutral bond market.This paper firstly compares the development of the carbon neutral bond market,introduces the issuance of carbon neutral bonds,and analyzes and summarizes the issuance scale,issuance period,issuing body,issuance interest rate and issuance motivation of carbon neutral bonds.Secondly,this paper selects the panel data of listed non-financial companies in China from January 2020 to December 2022,and constructs a multi-temporal double difference model to empirically test the effect of issuing carbon neutral bonds on enterprise value,and comes to the following main conclusions: Firstly,issuing carbon neutral bonds can significantly improve enterprise value.Secondly,the value enhancement effect of issuing carbon neutral bonds is more significant for enterprises in the power sector,non-eastern regions and first time issuers of carbon neutral bonds.Thirdly,debt financing costs and financing constraints play a mediating role in increasing the value of carbon neutral bonds.Finally,on the basis of this conclusion,recommendations are put forward: to improve the information disclosure system and sound the construction of China’s carbon neutral bond market;to strengthen the supervision and management mechanism to guarantee the quality of carbon neutral bonds;to open up the domestic carbon neutral bond market and improve market liquidity;to cultivate the awareness of green investment and financing and to increase the participation of enterprises and investors in the carbon neutral bond market.