Abstract
Environmental management and sustainable financial growth are currently hot topics in academic research. This article examines the relationships among environmental management, debt financing, and sustainable financial growth in the Chinese tourism industry. The results show that environmental management and debt financing have promoted sustainable financial growth, and the overall effect of debt financing on sustainable financial growth has been affected by environmental management. After employing different methods of controlling the endogeneity, these conclusions are still robust. We also examine the mediating effect and threshold effect on environmental management, debt financing, and sustainable financial growth, and the results reveal that debt financing can mediate the effect of environmental management on sustainable financial growth and that there is nonlinear impact of debt financing on sustainable financial growth in different thresholds of environmental management. The analysis results show that the presented policy proposals promote the development of tourism companies from the aspects of debt financing and environmental management.
Highlights
This article explores how debt financing mediates the relationship between environmental management and sustainable financial growth
Since the data used are short term and the number of companies is relatively large, we first conduct the least square dummy variable (LSDV) method to investigate the effects of environmental management and debt financing on sustainable financial growth
The regression coefficients of environmental management are positive significant at the 5% level, which indicates that the environmental management of tourism enterprises has notably enhanced their sustainable financial growth
Summary
This article explores how debt financing mediates the relationship between environmental management and sustainable financial growth. Debt financing can precisely reflect the real financing cost of the financing entity, and performs a significant role in the financial planning and investment decisionmaking of tourism enterprises. To explore the mediating role of debt financing, this article examines whether debt financing is positively affected by effective environmental management and whether debt financing, in turn, contributes to sustainable financial growth. Environmental management includes all actions taken systematically to supervise the ecological effect of the enterprise’s movements and to handle environment-related issues. This article employs the method proposed by Gil et al (2001) and adopts environmental management variables. Our article follows the method of Colley et al (2002) to measure the sustainable financial growth to reduce the environmental impact of tourism enterprises
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