Exploring the Dual Impact of Green Bond Issuance on Corporate Financial Performance and Environmental Performance - The Case of BYD

Green bonds have assumed a distinct and pivotal role in the global wave of sustainable development. As the green bond market continues to expand annually, it is imperative not to underestimate developing countries' influence. China has emerged as a dominant force in the global green bond market. This paper focuses on the Chinese market and analyses the financial and environmental effects of two successful green bond issues issued by BYD, a head of a new energy vehicle enterprise in China. Regarding the financial effect, this paper employs a three-dimensional analytical approach to assess the solvency, profitability, and operating capability of the enterprise, aiming to elucidate the positive impact of green bond issuance on its financial status. Concerning the environmental effect, several key environmental indicators from pollutant emissions, energy use efficiency, and water resource management are selected to scientifically assess the positive effect of green bond issuance on corporate environmental performance. It can be concluded that green bonds issuance can enhances both financial and environmental performance of enterprises, providing a useful reference for the green transformation of other enterprises.