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Green Social Responsibility and Company Financing Cost-Based on Empirical Studies of Listed Companies in China

Author

Listed:
  • Duan Ji

    (School of Accounting, Shandong University of Finance and Economics, Ji’nan 250014, Shandong, China)

  • Yuyu Liu

    (School of Accounting, Shandong University of Finance and Economics, Ji’nan 250014, Shandong, China)

  • Lin Zhang

    (School of Law and Economics, Shandong University of Technology, Zibo 255000, Shandong, China
    School of Law, Fujian Normal University, Fuzhou 350117, Fujian, China)

  • Jingjing An

    (School of Law, Shandong University of Technology, Zibo 255000, Shandong, China)

  • Wenyan Sun

    (Agricultural Bank of China, Qingdao 266000, Shandong, China)

Abstract

Taking Chinese A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2018 as research samples, this paper studies the relationship between green corporation social responsibility (CSR) and financing cost of Chinese companies by means of moderating effect and multiple regression analysis. It is found that, for companies, the better the performance of green social responsibility, the lower the financing cost. However, it is also found that for companies with different pollution degrees and natures of property rights, the financing cost reduction effects due to green social responsibility are quite different. Compared with low-polluting companies, the financing cost reduction effect arisen by green CSR will be weakened for high-polluting companies. Compared with private companies, the financing cost reduction effect from green CSR will also be weakened for state-owned companies. To sum up, the research results of this paper show that there is a significant saving effect on financing cost for companies undertaking green CSR, and companies’ characteristics of pollution degree and property right can regulate the impact of green CSR on financing cost. The conclusion of this paper can encourage companies to take green social responsibility actively and reduce the cost of financing.

Suggested Citation

  • Duan Ji & Yuyu Liu & Lin Zhang & Jingjing An & Wenyan Sun, 2020. "Green Social Responsibility and Company Financing Cost-Based on Empirical Studies of Listed Companies in China," Sustainability, MDPI, vol. 12(15), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:15:p:6238-:d:393795
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    References listed on IDEAS

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    Cited by:

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    3. Wei‐jian Li & Wei Zhu & Bin Wang, 2023. "The impact of creating shared value strategy on corporate sustainable development: From resources perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2362-2384, September.
    4. Sun, Jiamu & Xue, Jiaan & Qiu, Xiaodong, 2023. "Has the sustainable energy transition in China's resource-based cities promoted green technology innovation in firms?," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
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    6. Yaowei Cao & Youtang Zhang & Liu Yang & Rita Yi Man Li & M. James C. Crabbe, 2021. "Green Credit Policy and Maturity Mismatch Risk in Polluting and Non-Polluting Companies," Sustainability, MDPI, vol. 13(7), pages 1-23, March.

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