Research On The Motivation And Effect Of Carbon-Neutral Bonds Issued By Triumph Science&Technology Group Company Limited

As the global economy has advanced rapidly in recent times,the stark contrast between China’s economic growth and environmental preservation has become increasingly apparent,thus drawing the collective attention and worry of the entire population.In September 2020 the Chinese government proposed a " carbon peaking and carbon neutrality " goal,which has opened up fresh prospects for green finance in China and put pressure on businesses to invest in green funds.This has led to the emergence of carbon-neutral green bonds,a pioneering application of green finance,which have experienced a swift growth since their inception.What are the effects produced by issuing carbon-neutral green bonds and what are the specific effects? This thesis examines the consequences of issuing carbon-neutral green bonds,taking Triumph Science&Technology Group Limited Liability Company as an example,and offers advice for other businesses to do the same,in order to draw in more social funds to the green sector and foster the growth of China’s carbon-neutral green bond market.This is of immense theoretical and practical importance in order to achieve the ambition of "carbon peaking and carbon neutrality ".This thesis employs information asymmetry theory,signal transmission theory,pecking-order theory and corporate reputation theory to analyze the motives and effects of the carbon-neutral green bond issued by Triumph Science&Technology Group Limited Liability Company in 2021 through the use of a case study method,comparative study method and event study method.Through the case study,it is found that the motivation of Triumph Science&Technology Group Limited Liability Company to issue carbon-neutral bonds is manifested externally as conforming to the national development policy and meeting the industry’s demand for green transformation;internally as meeting the demand for green project funds,reducing financing costs and enhancing green reputation.The effects of carbon-neutral bonds issued by Triumph Science&Technology Group Limited Liability Company mainly include: financial effect,environmental effect,social effect,reputation effect and share price effect.In terms of financial effect,it is found that it can help the issuer to reduce financing cost,replenish working capital and thus improve short-term debt servicing capacity,and also slightly help to optimize the debt structure;in terms of environmental effect,it is found that it can provide stable green funds for the enterprise,reduce the emission of carbon dioxide and other pollutants,and protect the environment;in terms of social effect,it is found that it can also help to promote the development of the local area and expand employment.In terms of social effect,it is found that it can help to promote the development of local regions,expand employment and play a pioneering role;in terms of reputation effect,it is found that it can help enterprises to enhance their green reputation and establish a green corporate image;in terms of stock price effect,it is found that it can improve investors’ confidence in subsidiaries to a certain extent,which will have a positive effect on stock prices and thus generate excess returns.This thesis analyzes the motivation of the issuance of carbon-neutral bonds of Triumph Science & Technology Group Limited Liability Company Technology by combing relevant literature,and then conducts a comprehensive review of the path of the effect generated by the issuance of carbon-neutral bonds,and conducts an in-depth study of its effect.This article will offer advice and guidance to other companies to issue carbon-free green bonds,thereby fostering the growth of our nation’s carbon-free green bond market and achieving the " carbon peaking and carbon neutrality " objective.