Corporate carbon dioxide emissions and the cost of debt financing: Evidence from the global tourism industry

This article answers the question of whether the adoption of International Financial Reporting Standards (IFRS) reduces the cost of equity capital, with a focus on the tourism industry. We employ a set of global tourism companies and find that mandatory IFRS adoption has a significantly negative relation with the cost of equity capital. However, we find that this relation is varied with different business cultures and geographic areas. Moreover, from interactive analyses of country institutions for the relation between mandatory IFRS adoption and tourism firm’s cost of equity, we show that adopting IFRS complements the deficiencies of various country institutions, such as investor protection, the strength of legal enforcement, and corporate governance.

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DEPENDENCE OF THE COST OF ELECTRICITY ON THE VOLUME OF GREENHOUSE GAS EMISSIONS

Bulletin of the Angarsk State Technical University ◽

10.36629/2686-777x-2021-1-15-71-75 ◽

2022 ◽

Vol 1 (15) ◽

pp. 71-75

Author(s):

Dmitriy Kononov

Keyword(s):

Carbon Dioxide ◽

Greenhouse Gas Emissions ◽

Greenhouse Gas ◽

Energy Security ◽

Carbon Dioxide Emissions ◽

Power Plants ◽

Low Carbon ◽

Electricity Prices ◽

Low Carbon Development ◽

The Cost

The strategy of low-carbon development of the economy and energy of Russia provides for the introduction of a fee (tax) for carbon dioxide emissions by power plants. This will seriously affect their prospective structure and lead to an increase in electricity prices. The expected neg-ative consequences for national and energy security are great. But serious and multilateral research is needed to properly assess these strategic threats

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Does opening high-speed railways affect the cost of debt financing? A quasi-natural experiment

China Finance Review International ◽

10.1108/cfri-06-2019-0083 ◽

2020 ◽

Vol 10 (4) ◽

pp. 473-496

Author(s):

Hongling Guo ◽

Keping Wu

Keyword(s):

High Speed ◽

Geographical Location ◽

Debt Financing ◽

Cost Of Debt ◽

High Speed Railway ◽

Content Type ◽

Financing Cost ◽

Debt Market ◽

The Cost ◽

The Impact

PurposeThis study aims to investigate how opening high-speed railways affects the cost of debt financing based on China's background.Design/methodology/approachUsing panel data on Chinese listed firms from 2008 to 2017, this study constructs a quasi-natural experiment and adopts a difference-in-difference model with multiple time periods to empirically examine the relation between the high-speed railway openings and debt financing cost.FindingsOur results show that opening high-speed railways reduces the cost of debt financing, and this negative correlation is more significant in non-state firms, firms with weaker internal control, and firms that hire non-Big Four auditors. Besides, we explore the impact mechanisms and find that opening high-speed railways improves analyst attention, institutional investor participation, and information disclosure quality, which in turn lowers the cost of debt financing.Research limitations/implicationsThe results imply that the opening of high-speed railways helps to alleviate the information asymmetry and adverse selection between firms and creditors and ultimately reduces the cost of corporate debt financing.Practical implicationsThis paper can inform firms and stakeholders about the impact of opening high-speed railways on debt financing cost: it improves the information environment, reduces the geographical location restrictions of debt financing, ensures the reasonable pricing of corporate debt, and thus promotes the healthy and sound development of the debt market.Originality/valueThis paper provides theoretical support and empirical evidence for the impact of infrastructure construction on the information environment of the debt market in China, which enriches the research on the “high-speed railway economy.” In addition, as an exogenous event, the opening of high-speed railways instantly shortens the time distance between firms and external stakeholders, which gives us a natural environment to conduct empirical research, thus providing a new perspective for financial research on firms' geographical location.

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Reprint of: Quantifying direct and indirect carbon dioxide emissions of the Chinese tourism industry

Journal of Cleaner Production ◽

10.1016/j.jclepro.2016.03.177 ◽

2017 ◽

Vol 163 ◽

pp. S401-S409 ◽

Cited By ~ 3

Author(s):

Weiqing Meng ◽

Lingying Xu ◽

Beibei Hu ◽

Jun Zhou ◽

Zhongliang Wang

Keyword(s):

Carbon Dioxide ◽

Carbon Dioxide Emissions ◽

Tourism Industry

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The energy requirements and carbon dioxide emissions of tourism industry of Western China: A case of Chengdu city

Renewable and Sustainable Energy Reviews ◽

10.1016/j.rser.2011.02.029 ◽

2011 ◽

Vol 15 (6) ◽

pp. 2887-2894 ◽

Cited By ~ 62

Author(s):

Jun Liu ◽

Tingting Feng ◽

Xi Yang

Keyword(s):

Carbon Dioxide ◽

Carbon Dioxide Emissions ◽

Tourism Industry ◽

Western China ◽

Energy Requirements

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ESG Scores and the Credit Market

Sustainability ◽

10.3390/su12083456 ◽

2020 ◽

Vol 12 (8) ◽

pp. 3456 ◽

Cited By ~ 4

Author(s):

Ga-Young Jang ◽

Hyoung-Goo Kang ◽

Ju-Yeong Lee ◽

Kyounghun Bae

Keyword(s):

Small Firms ◽

Credit Rating ◽

Credit Ratings ◽

Debt Financing ◽

Corporate Bond ◽

Cost Of Debt ◽

Rating Agencies ◽

Bond Returns ◽

The Cost ◽

The Relationship

This study analyzes the relationship between Environmental, Social and Governance (ESG) scores and bond returns using the corporate bond data in Korea during the period of 2010 to 2015. We find that ESG scores include valuable information about the downside risk of firms. This effect is particularly salient for the firms with high information asymmetry such as small firms. Interestingly, of the three ESG criteria, only environmental scores show a significant impact on bond returns when interacted with the firm size, suggesting that high environmental scores lower the cost of debt financing for small firms. Finally, ESG is complementary to credit ratings in assessing credit quality as credit ratings cannot explain away ESG effects in predicting future bond returns. This result suggests that credit rating agencies should either integrate ESG scores into their current rating process or produce separate ESG scores which bond investors integrate with the existing credit ratings by themselves.

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