Welcome to Francis Academic Press

Academic Journal of Business & Management, 2022, 4(17); doi: 10.25236/AJBM.2022.041718.

Environmental Information Disclosure, Environmental Inputs and the Cost of Debt Financing——Experience from Listed Companies in China's Heavily Polluting Industries

Author(s)

Fei Huang

Corresponding Author:
Fei Huang
Affiliation(s)

School of Management, Shanghai University, Shanghai, China

Abstract

This paper investigates the impact of corporate environmental information disclosure on the cost of debt financing and further explores the impact of environmental information disclosure on the cost of debt financing based on the moderating effect of environmental inputs and also based on the heterogeneity of firm attributes. The findings of this study show that: environmental information disclosure is negatively related to firms' debt financing costs; environmental protection inputs play an enhanced moderating role in the effect of environmental information disclosure on debt financing costs; and the moderating effect of environmental protection inputs on the negative relationship between environmental information disclosure and debt financing costs is more significant in non-state-owned firms compared to state-owned firms.

Keywords

Environmental Information Disclosure, Environmental Inputs, The Cost of Debt Financing, The heavy pollution industry

Cite This Paper

Fei Huang. Environmental Information Disclosure, Environmental Inputs and the Cost of Debt Financing——Experience from Listed Companies in China's Heavily Polluting Industries. Academic Journal of Business & Management (2022) Vol. 4, Issue 17: 138-145. https://doi.org/10.25236/AJBM.2022.041718.

References

[1] Ji Li, He Xiqiong, Mao Hongtao. "Opportunism" or "ethical behavior"? --A study on the surplus management behavior of socially responsible companies [J]. Accounting and Economic Research, 2014, 28(05): 10-25.

[2] Chen GH, Guan X, Wang JF. Can corporate social responsibility inhibit surplus management? -- An empirical study based on should-be disclosure versus voluntary disclosure [J]. Accounting Research, 2018(03): 19-26.

[3] Li Diamond, Liu Qi, Zhou Yanli. Analysis of corporate social responsibility motivation based on the relationship between social responsibility and surplus management [J]. Statistics and Decision Making, 2017(10): 174-178.

[4] Dhaliwal D S, Li O Z, Tsang A, et al. Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting[J]. Accounting Review, 2011, 86(1): 59-100.

[5] Cai L, Cui J, Jo H. Corporate Environmental Responsibility and Firm Risk [J]. Journal of Business Ethics, 2015, 139(3): 563-594.

[6] Wang L.P., Li S.Q., Li C. Study on the impact of environmental information disclosure quality on corporate value - an analysis based on market-oriented perspective [J]. Yangtze River Basin Resources and Environment, 2020, 29(05): 1110-1118.

[7] Tong, Meng-Hua, Xu, Dongyan, Zheng, Tim-Wen. Corporate environmental information disclosure and the cost of equity capital - An analysis of the mediating effects based on information transparency and social responsibility [J]. Research on Finance and Economics, 2020(02): 63-71.

[8] Ni Juan, Kong Lingwen. Environmental information disclosure, bank credit decision and debt financing cost-Empirical evidence from A-share listed companies in heavy pollution industries in Shanghai and Shenzhen, China [J]. Economic Review, 2016(01): 147-156+160.

[9] Sharfman M P, Fernando C S. Environmental risk management and the cost of capital [J]. Strategic Management Journal, 2008, 29(6): 569-592.

[10] Wei, Yunyi. A study on corporate environmental performance, R&D investment and cost of equity capital [D]. Northern Polytechnic University, 2022.

[11] He Xianjie, Xiao Tusheng, Chen Xinyuan. Corporate social responsibility (CSR) letter phi helmets and corporate finance about wrecking [J]. Financial Research, 2012(08): 60-70.

[12] Wiseman J. An Evaluation of Environmental Disclosures Made in Corporate Annual Reports [J]. Accounting Organizations and Society, 1982, (1): 53-63

[13] Shen Hongtao, Li Yu Xiaolu. Analysis of the current situation of environmental information disclosure of listed companies in China's heavy pollution industry [J]. Securities Market Herald, 2010, (6): 51-57.

[14] Liu Ruxia. An empirical analysis of factors influencing corporate environmental information disclosure: An observation of A-share listed companies in heavy pollution industry from 2010 to 2011[J]. Finance and Finance, 2014(02):82-90.

[15] Zhou K.T., Ma C.M., Wu L. S. Executives' academic experience and the cost of corporate debt financing [J]. Economic Research, 2017, 52(07): 169-183.

[16] Eri Nakamura. Does Environmental Investment Really Contribute to Firm Performance? An Empirical Analysis Using Japanese Firms [J]. Eurasian Business Review, 2011, 1(2): 91-111

[17] Wang X, Xu X, Wang Chen. Public pressure, social reputation, internal governance and corporate environmental information disclosure - Evidence from Chinese listed manufacturing companies [J]. Nankai Management Review, 2013, 16(02): 82-91.

[18] Khan A, Muttakin M B, Siddiqui J. Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy [J]. Journal of Business Ethics, 2013, 114(2): 207-223.

[19] Wang Fan, Ni Juan. Corporate governance, social responsibility performance and environmental information disclosure [J]. Shandong Social Science, 2016(06): 129-134.

[20] Gao Hongxia, Zhu, Haiyan, Meng, Fanjun. Does the quality of environmental information disclosure affect the cost of debt financing? --Empirical Evidence from Listed Companies in Environmentally Sensitive Industries in China [J]. Journal of Nanjing Audit University, 2018, 15(06): 20-28.