Research On The Motivation And Effect Of Green Bond Financing For Environmental Protection Enterprises

The report of the 20 th National Congress of the Communist Party of China pointed out that it is necessary to "improve the fiscal,taxation,finance,investment,price policy and standard system supporting green development",which provides a broader space for the development of green finance.As an important part of green finance,green bonds have achieved vigorous development in recent years thanks to the strong support of national policies.The "green attributes" possessed by green bonds are in line with the environmentally friendly attributes of the environmental protection industry,and environmental enterprises can overcome financing difficulties through green bond financing.This paper selects Xingrong Environment,a large domestic water environmental protection comprehensive service provider,as a case company,and uses case study,comparative analysis and event study to analyze the financing motivation and effect of Xingrong environmental green bonds.Firstly,this article introduces the development status of the environmental protection industry and explores the current situation of green bond financing for environmental protection enterprises.Secondly,the basic situation of the case company Xingrong Environment was introduced,and the issuance of green bonds and fundraising projects of the enterprise were sorted out.Then,analyze the motivation and specific financing effects of Xingrong Environmental Green Bond financing.Finally,draw inspiration.Through the case analysis of Xingrong Environmental Green Bond Financing,the main conclusions drawn in this article are: firstly,the external factors of Xingrong Environmental Green Bond Financing include policy support,rapid development of green bonds,and financing advantages;Internal motivations include meeting the investment needs of green projects and gaining more attention from green investors.Secondly,green bond financing can alleviate the mismatch of corporate debt maturity,improve debt repayment ability,enhance profitability,and improve the ecological and urban environment of Xingrong Environment.Through green bond financing,the preparation of green projects improves the ecological and urban environment,promotes local employment,and enhances corporate reputation.Green bond financing can have a positive impact on the company’s stock price.On this basis,we draw some enlightenment: first,environmental protection enterprises should make full use of green finance tools to enrich financing methods and channels;Secondly,the issuing entity should attach importance to the screening of green projects.Possible innovation: The research perspective has a certain degree of innovation.The existing literature focuses on the research objects of green bonds in the energy and real estate industries,and there is relatively little research on the financing effects of green bonds in the environmental protection industry.The case company selected in this article is a large-scale water and environmental protection comprehensive service provider in China.By analyzing the financing motivations and effects of the case company’s green bonds,we hope to provide reference for other environmental protection enterprises and listed companies.