Abstract
In the context of green finance, whether listed companies in heavily polluting industries can convert the external pressure of environmental information disclosure into internal motivation is critical to achieving environmental governance goals. This paper selects 946 listed companies of 16 heavily polluting industries in the Shanghai and Shenzhen stock markets as samples to explore whether environmental information disclosure can help companies increase bank credit support and reduce debt financing costs to transform their external pressures into internal motivation. The empirical results show that there is a significant positive correlation between environmental information disclosure and bank credit decisions. From the perspective of financing scale, heavily polluting companies have the inherent motivation to disclose environmental information actively and proactively to obtain more credit support. There is no significant relationship between the corporate debt financing cost and environmental information disclosure. This paper puts forward some critical policy suggestions for government decision makers, heavily polluting enterprises, and financial institutions.
Highlights
In recent years, the issue of the ecological environment has received great attention from governments worldwide
This paper selects 946 listed companies of 16 heavily polluting industries in the Shanghai and Shenzhen stock markets as samples to explore whether environmental information disclosure can help companies increase bank credit support and reduce debt financing costs to transform their external pressures into internal motivation
To examine the internal driving force of corporate environmental information disclosure, this paper chooses the empirical data of 946 listed companies in 16 heavily polluting industries in China’s Shanghai and Shenzhen stock markets to explore whether environmental information disclosure can increase bank credit support and reduce debt financing costs for enterprises
Summary
The issue of the ecological environment has received great attention from governments worldwide. When companies actively disclose highquality information to external stakeholders, their "green image" and "environmental label" can improve corporate reputation, increase bank credit support and reduce financing risks (Zhu, 2019). This enhances the internal motivation of enterprises to disclose high-quality environmental information. To examine the internal driving force of corporate environmental information disclosure, this paper chooses the empirical data of 946 listed companies in 16 heavily polluting industries in China’s Shanghai and Shenzhen stock markets to explore whether environmental information disclosure can increase bank credit support and reduce debt financing costs for enterprises. Based on the conclusions of empirical analysis, this study puts forward relevant suggestions to provide a theoretical basis and decision support for the government and enterprises to build an environmental governance system
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