Is There A Green Premium In China's Capital Market?

The environmental protection and social responsibility caused by the developing of economy have received more and more attention from scholars.At present,many scholars have studied the impact of social responsibility on the performance of the enterprise market,mainly forming the hypothesis of poor performance and excessive performance,but no unified conclusion has yet been reached.China is vigorously promoting the development of green finance at this stage,and more and more investors are paying attention to green enterprises.According to the Green Finance Working Group's Building China's Green Finance,China's green enterprise IPO progress is slow,IPO is the main direct financing method,and accelerating the IPO progress of green enterprises has become an important way to promote the development of domestic green industry.Based on this,this paper studies whether the IPO of green enterprise is listed on the day and the long-term performance of it has a “green premium” relative to the non-green enterprise – the yield of the green enterprise IPO on the day of listing and the excess of 1 year,2 years and 3 years after the IPO is listed.The cumulative income is higher than non-green companies.This paper takes the company's fundamental factor,investor sentiment and information asymmetry as the control variables,and whether the enterprise is a green enterprise as an explanatory variable,aiming to study whether there is a “green premium” on the day when the green enterprise IPO is listed and 1 year,2 years and 3 years after the IPO so as to explore whether the characteristics of green enterprises are the factors which affect the performance of the enterprise IPO market.This paper takes the newly listed enterprises of A-shares from 1995 to 2014 as the research object,and regards the green enterprises in the big wisdom energy-saving and environmental protection sector and the green concept enterprises in the WIND database as two different green enterprises,and the rest enterprises as non-green companies.Considering whether the enterprise is green,and adopting multiple linear regression for the virtual variable of the green enterprise,and empirically studying the first day of IPO and long-term performance of the two types of green enterprises during the whole sample period,the examination and approval period,and the approval period.Secondly,for green enterprises,according to the proportion of green business in the main business on the first day of listing,they are divided into dark green,medium green and light green enterprises.And explore whether the different green levels of green enterprises have a significant impact on the high-density rate and long-term performance of green enterprise IPOs on the first day.There are three main conclusions:(1)During the full sample period,the approval system and the approval system,there is a significant negative correlation between the green enterprise characteristics and the IPO underpricing rate on the first day of IPO.This indicates that green enterprises do not have a “green premium” on the first day of the IPO.(2)As to the long-term performance of IPO,the green enterprise characteristics have a significant positive correlation between CAR and BHAR in the 1st,2nd,and 3rd years after the IPO in the full sample and approval period,and 1 year and 2 after the IPO in the approval period.There is a positive correlation between CAR and BHAR in the year and 3 years,which has little effect.This indicates that China's green enterprises have a “green premium” in the long-term performance of IPO,and the green premium is more significant during the approval period.(3)For green enterprises,the degree of greenness has a negative correlation with the high underpricing rate on the first day of IPO,and there is a positive correlation between CAR and BHAR at 1 year,2 years and 3 years after IPO,which has little significant.This shows that the degree of greening of enterprises has little effect on IPO first-day underpricing and long-term performance.