Proceedings of the 2024 3rd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2024)

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Analyzing the Financial Impact of Green Bond Issuance on New Energy Vehicle Companies: Insights from BAIC Automotive Group in China

Authors
Tianyu Qi1, *
1University of Nottingham, Ningbo, China
*Corresponding author. Email: qty0629@163.com
Corresponding Author
Tianyu Qi
Available Online 21 October 2024.
DOI
10.2991/978-94-6463-548-5_10How to use a DOI?
Keywords
Green Bonds; Financial Performance; New Energy Vehicle
Abstract

This study examines the financial effects of two green debts issued by BAIC and assesses their impact on new energy vehicle manufacturers. Based on the insights from analysis, this study proposes suggestions for promoting the use of green finance instruments in the Chinese NEVs market. This paper demonstrates that green bonds can reduce financing costs for automakers and positively influence investors’ expectations, as indicated by the AR and CAR figures.

Despite the benefits of green bonds, BAIC experienced a decline in revenue growth during its transformation, potentially due to a lack of product superiority. The continuous issuance of the second round of green bonds further constrained the company’s cash flow and debt repayment capacity. Given the inherent risks associated with the “bond” aspect of green debt instruments, NEV enterprises should evaluate their market conditions and organizational factors before selecting a financing strategy.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 3rd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
21 October 2024
ISBN
978-94-6463-548-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-548-5_10How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Tianyu Qi
PY  - 2024
DA  - 2024/10/21
TI  - Analyzing the Financial Impact of Green Bond Issuance on New Energy Vehicle Companies: Insights from BAIC Automotive Group in China
BT  - Proceedings of the 2024 3rd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2024)
PB  - Atlantis Press
SP  - 71
EP  - 82
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-548-5_10
DO  - 10.2991/978-94-6463-548-5_10
ID  - Qi2024
ER  -