Does environmental information disclosure affect the performance of energy-intensive firms’ borrowing ability? Evidence from China

2018 ◽  
Vol 29 (5) ◽  
pp. 685-705 ◽  
Author(s):  
Haiqing Hu ◽  
Chun-Ping Chang ◽  
Minyi Dong ◽  
Wei-Na Meng ◽  
Yu Hao
Keyword(s):  
Capital Market ◽  
Information Disclosure ◽  
Cost Of Capital ◽  
Environmental Information ◽  
Influential Factors ◽  
Environmental Information Disclosure ◽  
Loan Size ◽  
The Cost ◽  
The Impact ◽  
Positive Effect

In recent years, a growing strand of China’s listed companies chose to disclose environmental information, which may potentially affect their financial performance then further influence its performance of financial supports. To quantitatively investigate the impact of enterprise’s environmental information disclosure on the ability of firms’ borrowing in China, this paper divides the measurements of information disclosure into five categories and evaluates firms’ performance in capital market through its availability of a loan and the cost of capital. In total, 97 listed energy-intensive companies in China are selected and their data covering the period of 2000–2014 are utilized for empirical study. The empirical results indicate that enterprise’s environmental information disclosure appears to have a significantly positive effect on the loan size available, while the cost of capital is less sensitive to environmental information disclosure. The empirical evidence also suggests that, among the five aspects of information disclosure measurements, the future plan and monetary information are the most influential factors of the cost of capital.

scholarly journals The Impact of Mandatory Environmental Information Disclosure and the Green Innovation of Pollution-Intensive Companies? Evidence From China

2021 ◽  
Author(s):  
Qianghua Guo ◽  
Yidan Wei
Keyword(s):  
Information Disclosure ◽  
Natural Experiment ◽  
Stock Exchange ◽  
Emerging Countries ◽  
Environmental Information ◽  
Small Companies ◽  
Green Innovation ◽  
Environmental Information Disclosure ◽  
The Impact ◽  
Positive Effect

Abstract Based on the Guidelines of the Shanghai Stock Exchange on Environmental Information Disclosure for Listed Companies issued in 2008, this paper constructs a quasi-natural experiment and uses the did method to study the impact of mandatory environmental information disclosure on the green innovation of pollution-intensive companies in China. The results show that mandatory environmental information disclosure can significantly promote the green innovation of pollution-intensive companies by strengthening the company's motivation and pressure to comply with the regulation; in addition, the positive effect is more obvious in state-owned companies, small companies and companies with poor information condition in pollution-intensive industries. This paper enriches the literature of mandatory environmental information disclosure and offers guidance for policymakers seeking to improve environmental information disclosure policies in emerging countries.

scholarly journals The Impact of Environmental Information Disclosure on the Cost of Debt: Evidence From China

2021 ◽  
Author(s):  
Yongliang Yang ◽  
Jing Wen ◽  
Yi Li
Keyword(s):  
Information Disclosure ◽  
Fixed Effects ◽  
Information Source ◽  
Environmental Information ◽  
Cost Of Debt ◽  
Fixed Effects Model ◽  
Environmental Disclosure ◽  
Environmental Information Disclosure ◽  
The Cost ◽  
The Impact

Abstract With the growing attention the public has paid to environmental issues, environmental disclosure is not only a vital means for firms to convey social responsibility but also an important information source for lending institutions to assess the credit risk of firms. Based on the data of listed companies in China from 2007 - 2016, this paper applies a two-way fixed effects model to determine the impact of environmental information disclosure on the cost of debt. It reveals that environmental information disclosure could decrease companies’ cost of debt and that CEO duality and ownership concentration play vital roles in this relationship to some extent. After considering endogenous problems and testing the robustness, the conclusions still prove to be valid.

scholarly journals Analyst Following, Environmental Disclosure and Cost of Equity: Research Based on Industry Classification

2019 ◽  
Vol 11 (2) ◽  
pp. 300 ◽  
Author(s):  
Sheng Yao ◽  
Haotian Liang
Keyword(s):  
Least Squares ◽  
Information Disclosure ◽  
Ordinary Least Squares ◽  
Environmental Information ◽  
Mediating Effect ◽  
Cost Of Equity ◽  
Environmental Disclosure ◽  
Analyst Following ◽  
Environmental Information Disclosure ◽  
The Cost

Prior studies argue that an analyst is an important mediator between a firm and investors, and has a significant influence on the cost of equity. However, how analyst following influences the cost of equity has not been studied in depth. In the Chinese setting, where environmental information has attracted much attention, we explore the interaction among analyst following, environmental information disclosure, and cost of equity. With two linear regression methods of ordinary least squares (OLS) and two-Stage least squares (2SLS), we establish regressions to verify the relationships among them by using empirical data from 2004 to 2011 in China. The results show that analyst following can improve environmental information disclosure and lower the cost of equity. This interaction is more significant in the heavy-pollution industry and after new environmental policy is issued. We also find that environmental disclosure has a mediating effect, which determines how analyst following influences the cost of equity. The results expand the research on environmental information’s motivations and economic consequences.

scholarly journals The Effects of Environmental Performance and Environmental Information Disclosure on Financial Performance in Companies Listed on the Indonesia Stock Exchange

2019 ◽  
Vol 7 (11) ◽  
pp. 67-77
Author(s):  
Mikial Msy
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Environmental Information ◽  
Global Reporting Initiative ◽  
Sustainability Disclosure ◽  
Environmental Information Disclosure ◽  
The Cost ◽  
Sustainability Report

The objective of this study was to examine the effects of environmental performance and environmental information disclosure on financial performance in companies listed on the Indonesia Stock Exchange. The population in this study amounted to 20 companies listed on the Indonesia Stock Exchange, issued an Annual Report and Sustainability Report and included in the Sustainability Disclosure Database of the Global Reporting Initiative (GRI). The data used in the form of secondary data obtained from annual reports and sustainability reports of companies listed on the Indonesia Stock Exchange from 2013 to 2016. The numbers of observations in this study were 80. The analysis technique used was Partial Least Square (PLS). The novelty in this study is to measure environmental performance based on outcomes, namely environmental costs incurred by the company rather than compliance with regulations. The cost of a well-managed environment will improve environmental performance because there are efficient use of resources. The results of this study indicate that eenvironmental performance has no significant effect on financial performance, environmental information disclosure has a significant effect on financial performance. Disclosure of environmental information has a negative effect on financial performance, it shows that if the disclosure of environmental information is more equipped and in accordance with the disclosure guidelines, the cost is not small so that it will reduce financial performance. Research limitation that environmental costs is difficult to obtain so that the population is limited to companies listed on the IDX that have a Sustainability Report and are included in the Sustainability Disclosure Database of the Global Reporting Initiative. Disclosure of environmental information which is the result of the implementation environmental management accounting has not been done by all companies, because it is still voluntary is not mandatory. The suggestion of the research, the Indonesian Accountants Association is expected to form separate standards for measuring and reporting environmental cost information and standardized. For other researchers who are interested in researching environmental accounting can develop other variables for a longer time and the number of companies that publish more Sustainability Reporting.

Information risk, cost of equity and stock returns: evidence from Iranian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Abdollahi ◽  
Mehdi Safari Gerayli ◽  
Yasser Rezaei Pitenoei ◽  
Davood Hassanpour ◽  
Fatemeh Riahi
Keyword(s):  
Stock Returns ◽  
Capital Market ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Stock Exchange ◽  
Cost Of Equity ◽  
Content Type ◽  
Information Risk ◽  
The Cost ◽  
The Impact

Purpose A long history of literature has considered the role of information risk in determining the cost of equity. The question that has remained unanswered is whether information risk plays any systematic role in determining the cost of equity. One of the fundamental decisions that every business needs to make is to assess where to invest its funds and to re-evaluate, at regular intervals, the quality of its existing investments. The cost of capital is the most important yardstick to evaluate such decisions. Greater information is associated with the lower cost of capital via mitigating transaction costs and/or reducing estimation risk and stock returns. This study aims to investigate the impact of information risk on the cost of equity and corporate stock returns. Design/methodology/approach The research sample consists of 960 firm-year observations for companies listed on the Tehran Stock Exchange from 2009 to 2018. The research hypotheses were tested using multivariate regression models based on panel data. Findings The results reveal that information risk has a significant positive impact on the firm’s cost of equity. However, the impact of information risk on stock returns is not statistically significant. Originality/value To the best of the knowledge, the current study is almost the first of its kind in the Iranian literature which investigates the subject matter; therefore, the findings of the study not only extend the extant theoretical literature concerning the information risk in developing countries including the emerging capital market of Iran but also help investors, capital market regulators and accounting standard setters to make timely decisions.

scholarly journals The Impact of Environmental Information Disclosure Quality on Loan Scale for Enterprises in China’s Heavy Polluting Industries

2021 ◽  
Vol 261 ◽  
pp. 04018
Author(s):  
Jianfei Shen ◽  
Yidan Chen
Keyword(s):  
Information Disclosure ◽  
Environmental Information ◽  
Environmental Accounting ◽  
Bank Loans ◽  
Economic Consequences ◽  
Bank Loan ◽  
Disclosure Quality ◽  
Environmental Disclosure ◽  
Environmental Information Disclosure ◽  
The Impact

In view of the importance of environmental accounting to ecological governance, this article attempts to study the economic consequences of environmental information disclosure quality (EID) from the perspective of bank financing. We assume that good environmental information disclosure quality can help companies obtain bank loan, and then test this conjecture through empirical methods. The data of 330 listed companies in China’s heavy polluting industries were collected, and then analysed by SPSS for regression. The result shows that EID is positively related to the scale of corporate bank loan, which means the improvement of EID can bring convenience when companies need bank loans. The research clarifies the financial consequences of EID and provides some enlightenment for the improvement of corporate environmental disclosure quality.

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