Study On The Economic Consequences And Spillover Effects Of Green Bonds Issued By Enterprises

Since the reform and opening up,China’s rapid economic development,along with the consumption of resources and environmental damage.The environmental problems and energy crisis under the industrial development are gradually attracting the attention of the society and the government,and the environment and energy are related to the economic development and people’s survival,so the protection of the environment has attracted the attention of the society.As the importance of environmental protection increases,the state has implemented various policies to help economic development transition to a green and recyclable direction,reducing the damage to the ecological environment and the waste of resources caused by economic development.Green finance includes green bonds,and its market development has gained support from the market,society and policies.This case study selects Shandong Gold’s issuance of G19 Lujin 1 as a case study to investigate the economic consequences of Shandong Gold’s green bond issuance and the spillover effects within the industry.This paper adopts the case study method and event study method to analyze the economic consequences of Shandong Gold’s green bond issuance in terms of market reflection,financial changes,environmental and social benefits,and to study the spillover effects through the financing cost and green behavior of the same industry.The study found that the issuance of green bonds can enhance the company’s value in the short term with coupon rate advantage,and the issuance of green bonds can also reduce the overall debt financing cost of the company by sending a positive signal of future development.The financial analysis reflects that the issuance of green bonds can,to a certain extent,change the debt structure of a company and reduce the short-term repayment pressure due to the long maturity of green bonds.The issuance of corporate green bonds also improves corporate profitability indicators by reducing financial expenses and improving the capital structure.The issuance of green bonds by a company can positively influence the image of the company and its environmental performance.After Shandong Gold issues green bonds,it improves the reputation of the company through active and continuous green behaviors such as energy saving and emission reduction.Within the industry,the issuance of green bonds by companies can also reduce the financing cost within the industry by promoting the green behaviors of companies in the same industry.Therefore,the issuance of green bonds by enterprises can give the issuing enterprises a boost to their development on the one hand,and have a positive impact on society,the environment and within the industry on the other.Since corporate green bonds bring good influence to enterprises,industry and society,both government and enterprises can actively participate in the development of green bond market to help enterprises’ sustainable development and ecological environment protection.The government can ensure the development of green finance and the green development of enterprises by implementing incentive policies for green bond issuance and investment,improving regulatory strategies,and encouraging enterprises to accept social capital directly.As leaders of the industry,some enterprises should actively set an example for other enterprises in the industry.After issuing green bonds,enterprises should proactively cooperate with market managers to disclose information about green projects and enterprises.Of course,before issuing green bonds,companies should also consider their financial situation and capital needs and make a careful decision.