Analysis reveals that green bond issuance impacts debt structure and profitability in capital-intensive enterprises, suggesting strategic financial management is crucial.
As a key financing instrument for driving corporate green transformation, green bonds play a crucial role in achieving the "dual carbon" goals. This paper examines the multidimensional financial effects of green bonds by analyzing the financial data of China Yangtze Power from 2019 to 2024. The study finds that green bond issuance initially increased the company’s debt-to-asset ratio and weakened short-term solvency, but optimized the debt structure in the long run. Profitability exhibited a "U-shaped" trend, with early-stage pressure from project investments followed by significant long-term gains. Operational efficiency temporarily declined due to lengthy project cycles but gradually improved through supply chain optimization. Meanwhile, growth potential experienced a substantial leap, as green projects injected new momentum into sustainable development. The findings suggest that green bonds can effectively support the green transition of capital-intensive enterprises but require sound financial management and strategic planning. This study provides practical insights for power industry companies seeking to harmonize environmental and economic benefits through green bonds.
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Yuan et al. (2025) studied this question.