Efficiency of Carbon Emissions and Corporate Valuation in the Steel Industry: A Theoretical and Empirical Investigation

This study constructs a theoretical framework linking carbon emission efficiency with corporate value for steel enterprises based on the stakeholder perspective and Gordon model. By establishing a producer behavior model incorporating environmental constraints, we theoretically derive the mechanisms through which carbon emission efficiency promotes corporate value in both short-term and long-term equilibrium contexts. To characterize carbon efficiency features during production processes, we innovatively develop a multidimensional carbon efficiency indicator system integrating fixed asset carbon intensity (carbon emissions/fixed asset value), operating cost carbon intensity (carbon emissions/operating costs), and their interaction effects. Guided by the theoretical framework and using this indicator system, we construct three empirical models - corporate value model, equity capital cost model, and debt capital cost model - using panel data from steel enterprises. The corporate value model reveals that low-carbon fixed assets and cost inputs jointly enhance corporate value sustainability through improved carbon efficiency. The two capital cost models identify a transmission path where high carbon efficiency reduces both equity and debt financing costs, subsequently lowering weighted average capital costs and increasing corporate value.