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

With the growing attention being paid to environmental issues by the public, environmental information disclosure (EID) has become a vital means for firms to convey their social responsibility and an important information source for lending institutions to assess firm credit risk. Based on the data...

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Main Authors: Yongliang Yang, Jing Wen, Yi Li
Format: Article
Language:English
Published: Taylor & Francis Group 2024-12-01
Series:Journal of Applied Economics
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/15140326.2023.2301280
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author Yongliang Yang
Jing Wen
Yi Li
author_facet Yongliang Yang
Jing Wen
Yi Li
author_sort Yongliang Yang
collection DOAJ
description With the growing attention being paid to environmental issues by the public, environmental information disclosure (EID) has become a vital means for firms to convey their social responsibility and an important information source for lending institutions to assess firm credit risk. Based on the data of listed companies in China, a two-way fixed effects model is applied in this study to determine the impact of EID on the cost of debt. It reveals that EID can decrease companies’ cost of debt and that both CEO duality and ownership concentration play vital roles in this relationship. After the consideration of endogeneity problems and robustness testing, the conclusions remain valid.
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institution Kabale University
issn 1514-0326
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publishDate 2024-12-01
publisher Taylor & Francis Group
record_format Article
series Journal of Applied Economics
spelling doaj-art-372d0cb0f3e14a529e59e124965e90be2025-08-20T03:27:43ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262024-12-0127110.1080/15140326.2023.2301280The impact of environmental information disclosure on the cost of debt: evidence from ChinaYongliang Yang0Jing Wen1Yi Li2School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou, ChinaSchool of Urban and Regional Science, East China Normal University, Shanghai, ChinaFashion Department/DongHai Academy/Collaborative Innovation Center of Port Economy, Ningbo University, Ningbo, ChinaWith the growing attention being paid to environmental issues by the public, environmental information disclosure (EID) has become a vital means for firms to convey their social responsibility and an important information source for lending institutions to assess firm credit risk. Based on the data of listed companies in China, a two-way fixed effects model is applied in this study to determine the impact of EID on the cost of debt. It reveals that EID can decrease companies’ cost of debt and that both CEO duality and ownership concentration play vital roles in this relationship. After the consideration of endogeneity problems and robustness testing, the conclusions remain valid.https://www.tandfonline.com/doi/10.1080/15140326.2023.2301280Environmental information disclosurethe cost of debtpolicy evaluationcorporate social responsibility
spellingShingle Yongliang Yang
Jing Wen
Yi Li
The impact of environmental information disclosure on the cost of debt: evidence from China
Journal of Applied Economics
Environmental information disclosure
the cost of debt
policy evaluation
corporate social responsibility
title The impact of environmental information disclosure on the cost of debt: evidence from China
title_full The impact of environmental information disclosure on the cost of debt: evidence from China
title_fullStr The impact of environmental information disclosure on the cost of debt: evidence from China
title_full_unstemmed The impact of environmental information disclosure on the cost of debt: evidence from China
title_short The impact of environmental information disclosure on the cost of debt: evidence from China
title_sort impact of environmental information disclosure on the cost of debt evidence from china
topic Environmental information disclosure
the cost of debt
policy evaluation
corporate social responsibility
url https://www.tandfonline.com/doi/10.1080/15140326.2023.2301280
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