Impact of Environmental Disclosure Information on Corporate Debt Financing

  • Lei Chen Lei Chen, Ph.D. in Business Administration (International program), International College, Southeast Asia University, Thailand
Keywords: Environmental Information Disclosure, Debt Financing, Heavy pollution industry, Green credit policy


With the development of society, human beings rethink the sustainable development of economy and environment. As the main body of social economy, enterprises, in most cases, sacrifice some environmental resources while creating wealth for the society, which directly or indirectly causes increasingly severe pollution to the environment. So how to effectively curb corporate environmental pollution? The green credit mechanism, which urges enterprises to voluntarily improve the quality of environmental information disclosure through bank loans, is a major measure formulated by the government to increase the disclosure of enterprise environmental information. Therefore, based on the institutional background of green credit, this paper empirically tests the correlation between the quality of enterprise environmental information disclosure and debt financing ability. On the one hand, it can verify the implementation effect of the green credit policy; on the other hand, it can provide suggestions for further improving the environmental information disclosure system. This paper took eight listed companies in heavy pollution industries in Shanghai stock market as samples. The "content analysis method" was used to quantitatively analyze the environmental information disclosed in its social responsibility report (or environmental report and sustainable development report) from 2016 to 2018, and measured the environmental information disclosure level of the sample companies. Then it selected the short-term loan increment, long-term loan increment and total loan increment as the explanatory variables to explore the correlation between the level of environmental information disclosure and debt financing. It is found that there is a significant positive correlation between the level of environmental information disclosure and corporate debt financing. Finally, this paper put forward some suggestions to improve the environmental information disclosure system from the two aspects of government and enterprises in order to achieve green and sustainable development.