The impact of environmental information disclosure on the cost of debt: evidence from China

References

• Adusei, M., & Adeleye, N. (2021). Corporate disclosure and credit market development. Journal of Applied Economics, 24(1), 205–22. https://doi.org/10.1080/15140326.2021.1901644
   Web of Science ®Google Scholar
• Aerts, W., & Cormier, D. (2009). Media legitimacy and corporate environmental communication. Accounting, Organizations & Society, 34(1), 1–27. https://doi.org/10.1016/j.aos.2008.02.005
   Web of Science ®Google Scholar
• Ahmad, N., Li, H.-Z., & Tian, X.-L. (2019). Increased firm profitability under a nationwide environmental information disclosure program? Evidence from China. Journal of Cleaner Production, 230, 1176–1187. https://doi.org/10.1016/j.jclepro.2019.05.161
   Web of Science ®Google Scholar
• Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
   Web of Science ®Google Scholar
• Bhattacharya, C. B., Korschun, D., & Sen, S. (2009). Strengthening stakeholder–company relationships through mutually beneficial corporate social responsibility initiatives. Journal of Business Ethics, 85(2), 257–272. https://doi.org/10.1007/s10551-008-9730-3
   Web of Science ®Google Scholar
• Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
   Web of Science ®Google Scholar
• Boyer, M., & Laffont, J.-J. (1997). Environmental risks and bank liability. European Economic Review, 41(8), 1427–1459. https://doi.org/10.1016/S0014-2921(96)00034-7
   Web of Science ®Google Scholar
• Brammer, S., & Pavelin, S. (2006). Voluntary environmental disclosures by large UK companies. Journal of Business Finance & Accounting, 33(7–8), 1168–1188. https://doi.org/10.1111/j.1468-5957.2006.00598.x
   Web of Science ®Google Scholar
• Brooks, C., & Oikonomou, I. (2018). The effects of environmental, social and governance disclosures and performance on firm value: A review of the literature in accounting and finance. The British Accounting Review, 50(1), 1–15. https://doi.org/10.1016/j.bar.2017.11.005
   Web of Science ®Google Scholar
• Brown, N., & Deegan, C. (1998). The public disclosure of environmental performance information—a dual test of media agenda setting theory and legitimacy theory. Accounting and Business Research, 29(1), 21–41. https://doi.org/10.1080/00014788.1998.9729564
   Google Scholar
• Bushman, R. (1991). Public disclosure and the structure of private information markets. Journal of Accounting Research, 29(2), 261. https://doi.org/10.2307/2491049
   Web of Science ®Google Scholar
• Chen, D. (2012). Classified boards, the cost of debt, and firm performance. Journal of Banking & Finance, 36(12), 3346–3365. https://doi.org/10.1016/j.jbankfin.2012.07.015
   Web of Science ®Google Scholar
• Cho, C. H., & Patten, D. M. (2007). The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations & Society, 32(7–8), 639–647. https://doi.org/10.1016/j.aos.2006.09.009
   Web of Science ®Google Scholar
• Clarkson, P. M., Fang, X., Li, Y., & Richardson, G. (2013). The relevance of environmental disclosures: Are such disclosures incrementally informative? Journal of Accounting and Public Policy, 32(5), 410–431. https://doi.org/10.1016/j.jaccpubpol.2013.06.008
   Web of Science ®Google Scholar
• Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations & Society, 33(4), 303–327. https://doi.org/10.1016/j.aos.2007.05.003
   Web of Science ®Google Scholar
• Cohen, J. R., & Simnett, R. (2014). CSR and assurance services: A research agenda. AUDITING: A Journal of Practice, 34(1), 59–74. https://doi.org/10.2308/ajpt-50876
   Web of Science ®Google Scholar
• Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2010). Signaling theory: A review and assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419
   Web of Science ®Google Scholar
• Cormier, D., Gordon, I. M., & Magnan, M. (2004). Corporate environmental disclosure: Contrasting management’s perceptions with reality. Journal of Business Ethics, 49(2), 143–165. https://doi.org/10.1023/B:BUSI.0000015844.86206.b9
   Web of Science ®Google Scholar
• Dhaliwal, D. S., Radhakrishnan, S., Tsang, A., & Yang, Y. G. (2012). Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure. The Accounting Review, 87(3), 723–759. https://doi.org/10.2308/accr-10218
   Web of Science ®Google Scholar
• Elias, R. Z. (2004). The impact of corporate ethical values on perceptions of earnings management. Managerial Auditing Journal, 19(1), 84–98. https://doi.org/10.1108/02686900410509839
   Google Scholar
• Eliwa, Y., Aboud, A., & Saleh, A. (2019). ESG practices and the cost of debt: Evidence from EU countries. Critical Perspectives on Accounting. https://doi.org/10.1016/j.cpa.2019.102097
   Web of Science ®Google Scholar
• Erragragui, E. (2018). Do creditors price firms’ environmental, social and governance risks? Research in International Business and Finance, 45, 197–207. https://doi.org/10.1016/j.ribaf.2017.07.151
   Web of Science ®Google Scholar
• Fonseka, M., Rajapakse, T., & Richardson, G. (2019). The effect of environmental information disclosure and energy product type on the cost of debt: Evidence from energy firms in China. Pacific-Basin Finance Journal, 54, 159–182. https://doi.org/10.1016/j.pacfin.2018.05.001
   Web of Science ®Google Scholar
• Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
   Web of Science ®Google Scholar
• Francis, J. R., Khurana, I. K., & Pereira, R. (2005). Disclosure incentives and effects on cost of capital around the world. The Accounting Review, 80(4), 1125–1162. https://doi.org/10.2308/accr.2005.80.4.1125
   Web of Science ®Google Scholar
• Franco, F., Urcan, O., & Vasvari, F. P. (2016). Corporate diversification and the cost of debt: The role of segment disclosures. The Accounting Review, 91(4), 1139–1165. https://doi.org/10.2308/accr-51325
   Web of Science ®Google Scholar
• Freeman, R. E. (1984). Strategic management: A stakeholder approach.
   Google Scholar
• García‐Sánchez, I.-M., Hussain, N., Martínez‐Ferrero, J., & Ruiz‐Barbadillo, E. (2019). Impact of disclosure and assurance quality of corporate sustainability reports on access to finance. Corporate Social Responsibility and Environmental Management, 26(4), 832–848. https://doi.org/10.1002/csr.1724
   Web of Science ®Google Scholar
• Ge, W. X., & Liu, M. Z. (2015). Corporate social responsibility and the cost of corporate bonds. Journal of Accounting and Public Policy, 34(6), 597–624. https://doi.org/10.1016/j.jaccpubpol.2015.05.008
   Web of Science ®Google Scholar
• Giannarakis, G. (2014). The determinants influencing the extent of CSR disclosure. International Journal of Law and Management, 56(5), 393–416. https://doi.org/10.1108/ijlma-05-2013-0021
   Google Scholar
• Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1–3), 3–73. https://doi.org/10.1016/j.jacceco.2005.01.002
   Web of Science ®Google Scholar
• Guthrie, J., & Parker, L. D. (1989). Corporate social reporting: A rebuttal of legitimacy theory. Accounting and Business Research, 19(76), 343–352. https://doi.org/10.1080/00014788.1989.9728863
   Google Scholar
• Hadlock, C. J., & Pierce, J. R. (2010). New evidence on measuring financial constraints: Moving beyond the KZ index. Review of Financial Studies, 23(5), 1909–1940. https://doi.org/10.1093/rfs/hhq009
   Web of Science ®Google Scholar
• Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: A review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production, 59, 5–21. https://doi.org/10.1016/j.jclepro.2013.07.005
   Web of Science ®Google Scholar
• Hao, Y., Ye, B., Gao, M., Wang, Z., Chen, W., Xiao, Z., & Wu, H. (2020). How does ecology of finance affect financial constraints? Empirical evidence from Chinese listed energy- and pollution-intensive companies. Journal of Cleaner Production, 246, 119061. https://doi.org/10.1016/j.jclepro.2019.119061
   Web of Science ®Google Scholar
• Hasan, I., Hoi, C. K., Wu, Q., & Zhang, H. (2017). Social capital and debt contracting: Evidence from bank loans and public bonds. Journal of Financial and Quantitative Analysis, 52(3), 1017–1047. https://doi.org/10.1017/s0022109017000205
   Web of Science ®Google Scholar
• Hou, T. C.-T. (2019). The relationship between corporate social responsibility and sustainable financial performance: Firm-level evidence from Taiwan. Corporate Social Responsibility and Environmental Management, 26(1), 19–28. https://doi.org/10.1002/csr.1647
   Web of Science ®Google Scholar
• Huang, C.-L., & Kung, F.-H. (2010). Drivers of environmental disclosure and stakeholder expectation: Evidence from Taiwan. Journal of Business Ethics, 96(3), 435–451. https://doi.org/10.1007/s10551-010-0476-3
   Web of Science ®Google Scholar
• Ioannou, I., & Serafeim, G. (2015). The impact of corporate social responsibility on investment recommendations: Analysts’ perceptions and shifting institutional logics. Strategic Management Journal, 36(7), 1053–1081. https://doi.org/10.1002/smj.2268
   Web of Science ®Google Scholar
• Jensen,M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structureJournal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
   Web of Science ®Google Scholar
• Jizi, M. (2017). The influence of board composition on sustainable development disclosure. Business Strategy and the Environment, 26(5), 640–655. https://doi.org/10.1002/bse.1943
   Web of Science ®Google Scholar
• Kaur, A., & Singh, B. (2018). Measuring the immeasurable corporate reputation. Metamorphosis: A Journal of Management Research, 17(1), 53–64. https://doi.org/10.1177/0972622518778210
   Google Scholar
• Kim, J.-B., Simunic, D. A., Stein, M. T., & Yi, C. H. (2011). Voluntary audits and the cost of debt capital for privately held firms: Korean evidence. Contemporary Accounting Research, 28(2), 585–615. https://doi.org/10.1111/j.1911-3846.2010.01054.x
   Web of Science ®Google Scholar
• Lagasio, V., & Cucari, N. (2019). Corporate governance and environmental social governance disclosure: A meta-analytical review. Corporate Social Responsibility and Environmental Management, 26(4), 701–711. https://doi.org/10.1002/csr.1716
   Web of Science ®Google Scholar
• Lang, M., & Maffett, M. (2011). Economic effects of transparency in international equity markets: A review and suggestions for future research. Foundations & Trends® in Accounting, 5(3), 175–241. https://doi.org/10.1561/1400000016
   Google Scholar
• La Porta, R., Lopez De Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. The Journal of Finance, 54(2), 471–517. https://doi.org/10.1111/0022-1082.00115
   Web of Science ®Google Scholar
• Laskin, A. V. (2013). Reputation or financial performance: Which comes first. The Handbook of Communication and Corporate Reputation, 3, 376–387. https://doi.org/10.1002/9781118335529.ch31
   Google Scholar
• Legesse, T. S., & Guo, H. (2020). Does firm efficiency matter for debt financing decisions? Evidence from the biggest manufacturing countries. Journal of Applied Economics, 23(1), 106–128. https://doi.org/10.1080/15140326.2020.1711591
   Web of Science ®Google Scholar
• Li, J., Zhang, X., & Hu, J. (2021). Strategic co-funding in informal finance market: Evidence from China. Journal of Applied Economics, 24(1), 329–349. https://doi.org/10.1080/15140326.2021.1932395
   Web of Science ®Google Scholar
• Lo, A. K. (2014). Do declines in bank health affect borrowers’ voluntary disclosures? Evidence from international propagation of banking shocks. Journal of Accounting Research, 52(2), 541–581. https://doi.org/10.1111/1475-679x.12034
   Web of Science ®Google Scholar
• Luo, W., Guo, X., Zhong, S., & Wang, J. (2019). Environmental information disclosure quality, media attention and debt financing costs: Evidence from Chinese heavy polluting listed companies. Journal of Cleaner Production, 231, 268–277. https://doi.org/10.1016/j.jclepro.2019.05.237
   Web of Science ®Google Scholar
• Luo, X., Wang, H., Raithel, S., & Zheng, Q. (2015). Corporate social performance, analyst stock recommendations, and firm future returns. Strategic Management Journal, 36(1), 123–136. https://doi.org/10.1002/smj.2219
   Web of Science ®Google Scholar
• Maltby, J. (2004). Hadfields Ltd: Its annual general meetings 1903–1939 and their relevance for contemporary corporate social reporting. The British Accounting Review, 36(4), 415–439. https://doi.org/10.1016/j.bar.2004.07.016
   Google Scholar
• Milne, M. J., & Patten, D. M. (2002). Securing organizational legitimacy. Accounting Auditing & Accountability Journal, 15(3), 372–405. https://doi.org/10.1108/09513570210435889
   Google Scholar
• Mitton, T. (2007). Why have debt ratios increased for firms in emerging markets? European Financial Management, 14(1), 127–151. https://doi.org/10.1111/j.1468-036X.2007.00430.x
   Web of Science ®Google Scholar
• Morellec, E., & Schürhoff, N. (2011). Corporate investment and financing under asymmetric information. Journal of Financial Economics, 99(2), 262–288. https://doi.org/10.1016/j.jfineco.2010.09.003
   Web of Science ®Google Scholar
• Palmer, K., Oates, W. E., & Portney, P. R. (1995). Tightening environmental standards: The benefit-cost or the no-cost paradigm? Journal of Economic Perspectives, 9(4), 119–132. https://doi.org/10.1257/jep.9.4.119
   Web of Science ®Google Scholar
• Pedron, A. P. B., Macagnan, C. B., Simon, D. S., & Vancin, D. F. (2021). Environmental disclosure effects on returns and market value. Environment Development and Sustainability, 23(3), 4614–4633. https://doi.org/10.1007/s10668-020-00790-2
   Web of Science ®Google Scholar
• Pittman, J. A., & Fortin, S. (2004). Auditor choice and the cost of debt capital for newly public firms. Journal of Accounting and Economics, 37(1), 113–136. https://doi.org/10.1016/j.jacceco.2003.06.005
   Web of Science ®Google Scholar
• Porter, M., & Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
   Web of Science ®Google Scholar
• Pucheta‐Martínez, M. C., Bel‐Oms, I., & Rodrigues, L. L. (2019). The engagement of auditors in the reporting of corporate social responsibility information. Corporate Social Responsibility and Environmental Management, 26(1), 46–56. https://doi.org/10.1002/csr.1656
   Web of Science ®Google Scholar
• Raimo, N., Caragnano, A., Zito, M., Vitolla, F., & Mariani, M. (2021). Extending the benefits of ESG disclosure: The effect on the cost of debt financing. Corporate Social Responsibility and Environmental Management, 28(4), 1412–1421. https://doi.org/10.1002/csr.2134
   Web of Science ®Google Scholar
• Rechner, P. L., & Dalton, D. R. (1991). CEO duality and organizational performance: A longitudinal analysis. Strategic Management Journal, 12(2), 155–160. https://doi.org/10.1002/smj.4250120206
   Web of Science ®Google Scholar
• Rehman, Z. U., Khan, A., & Rahman, A. (2020). Corporate social responsibility’s influence on firm risk and firm performance: The mediating role of firm reputation. Corporate Social Responsibility and Environmental Management, 27(6), 2991–3005. https://doi.org/10.1002/csr.2018
   Web of Science ®Google Scholar
• Ross, A., & Rowan-Robinson, J. (1997). It’s good to talk! Environmental information and the greening of industry. Journal of Environmental Planning and Management, 40(1), 111–124. https://doi.org/10.1080/09640569712308
   Google Scholar
• Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
   Web of Science ®Google Scholar
• Samaha, K., Khlif, H., & Hussainey, K. (2015). The impact of board and audit committee characteristics on voluntary disclosure: A meta-analysis. Journal of International Accounting, Auditing & Taxation, 24, 13–28. https://doi.org/10.1016/j.intaccaudtax.2014.11.001
   Google Scholar
• Seetharaman, A., Gul, F. A., & Lynn, S. G. (2002). Litigation risk and audit fees: Evidence from UK firms cross-listed on US markets. Journal of Accounting and Economics, 33(1), 91–115. https://doi.org/10.1016/S0165-4101(01)00046-5
   Web of Science ®Google Scholar
• Sharfman, M. P., & Fernando, C. S. (2008). Environmental risk management and the cost of capital. Strategic Management Journal, 29(6), 569–592. https://doi.org/10.1002/smj.678
   Web of Science ®Google Scholar
• Shocker, A. D., & Sethi, S. P. (1973). An approach to incorporating societal preferences in developing corporate action strategies. California Management Review, 15(4), 97–105. https://doi.org/10.2307/41164466
   Web of Science ®Google Scholar
• Stiglitz, J. E., & Weiss, A. M. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71(3), 393–410. https://doi.org/10.7916/D8V12FT1
   Web of Science ®Google Scholar
• Thompson, P., & Cowton, C. J. (2004). Bringing the environment into bank lending: Implications for environmental reporting. The British Accounting Review, 36(2), 197–218. https://doi.org/10.1016/j.bar.2003.11.005
   Google Scholar
• Vo, X. V. (2023). Large shareholders and information asymmetry in a transition economy–evidence from Vietnam. The Singapore Economic Review, 68(5), 1551–1567. https://doi.org/10.1142/S0217590819500462
   Google Scholar
• Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18(4), 303–319. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<303:AID-SMJ869>3.0.CO;2-G
   Web of Science ®Google Scholar
• Wang, K. T., Kartika, F., Wang, W. W., & Luo, G. (2021). Corporate social responsibility, investor protection, and the cost of equity: Evidence from East Asia. Emerging Markets Review, 47, 100801. https://doi.org/10.1016/j.ememar.2021.100801
   Web of Science ®Google Scholar
• Weber, O., Diaz, M., & Schwegler, R. (2014). Corporate social responsibility of the financial sector - strengths, weaknesses and the impact on sustainable development. Sustainable Development, 22(5), 321–335. https://doi.org/10.1002/sd.1543
   Web of Science ®Google Scholar
• Weber, O., Scholz, R. W., & Michalik, G. (2010). Incorporating sustainability criteria into credit risk management. Business Strategy and the Environment, 19(1), 39–50. https://doi.org/10.1002/bse.636
   Web of Science ®Google Scholar
• Wooldridge, J. M. (2001). Applications of generalized method of moments estimation. Journal of Economic Perspectives, 15(4), 87–100. https://doi.org/10.1257/jep.15.4.87
   Web of Science ®Google Scholar
• Wu, W., An, S., Wu, C.-H., Tsai, S.-B., & Yang, K. (2020). An empirical study on green environmental system certification affects financing cost of high energy consumption enterprises-taking metallurgical enterprises as an example. Journal of Cleaner Production, 244, 118848. https://doi.org/10.1016/j.jclepro.2019.118848
   Web of Science ®Google Scholar
• Xu, H., Xu, X., & Yu, J. (2019). The impact of mandatory CSR disclosure on the cost of debt financing: Evidence from China. Emerging Markets Finance and Trade, 57(8), 2191–2205. https://doi.org/10.1080/1540496X.2019.1657401
   Web of Science ®Google Scholar
• Zaid, M. A. A., Abuhijleh, S. T. F., & Pucheta‐Martínez, M. C. (2020). Ownership structure, stakeholder engagement, and corporate social responsibility policies: The moderating effect of board independence. Corporate Social Responsibility and Environmental Management, 27(3), 1344–1360. https://doi.org/10.1002/csr.1888
   Web of Science ®Google Scholar
• Zeidan, R., Boechat, C., & Fleury, A. (2014). Developing a sustainability credit score system. Journal of Business Ethics, 127(2), 283–296. https://doi.org/10.1007/s10551-013-2034-2
   Web of Science ®Google Scholar