IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i24p16699-d1002410.html
   My bibliography  Save this article

Effect of Environmental Information Disclosure on the Financing Efficiency of Enterprises—Evidence from China’s Listed Energy Companies

Author

Listed:
  • Yingying Zhou

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

  • Zilin Shi

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

  • Fengyi Lei

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

  • Wanxuan Sun

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

  • Jiaxuan Zhang

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

In recent years, China has made it clear that the whole society should constantly enhance its awareness of ecological and environmental protection and promote the development of public safety and health. For listed energy enterprises, it is the responsibility of the enterprise to disclose the extent of environmental pollution in the development process to the whole society. The environmental information disclosure of energy enterprises not only promotes social and environmental protection but also has an impact on the financing efficiency of the enterprises themselves. After screening all A-share listed energy enterprises in China and eliminating the non-adoptable samples, 182 listed energy enterprises were finally selected as the research samples. Based on the data samples of 182 A-share listed energy industry enterprises in China from 2012 to 2019, this paper empirically tests the relationship between environmental information disclosure and corporate financing efficiency. The study finds that the environmental information disclosure has a significant positive impact on corporate financing efficiency, and the mediating effect model is used to analyze the intermediary role of corporate social responsibility in the impact of corporate environmental information disclosure on financing efficiency. This study expands the economic impact of corporate environmental information disclosure, improves the research framework on corporate financing efficiency, and provides informative suggestions for energy enterprises to improve financing efficiency and long-term development. In addition, the research shows that the environmental information disclosure and corporate social responsibility of listed energy enterprises in China still need to be improved, and the government and regulatory authorities should strengthen relevant policy constraints.

Suggested Citation

  • Yingying Zhou & Zilin Shi & Fengyi Lei & Wanxuan Sun & Jiaxuan Zhang, 2022. "Effect of Environmental Information Disclosure on the Financing Efficiency of Enterprises—Evidence from China’s Listed Energy Companies," Sustainability, MDPI, vol. 14(24), pages 1-21, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16699-:d:1002410
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/24/16699/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/24/16699/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhenyu Jiang & Zongjun Wang & Yanqi Zeng, 2020. "Can voluntary environmental regulation promote corporate technological innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 390-406, February.
    2. Marcel C. Minutolo & Werner D. Kristjanpoller & John Stakeley, 2019. "Exploring environmental, social, and governance disclosure effects on the S&P 500 financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1083-1095, September.
    3. Sang Jun Cho & Chune Young Chung & Jason Young, 2019. "Study on the Relationship between CSR and Financial Performance," Sustainability, MDPI, vol. 11(2), pages 1-26, January.
    4. Alkaraan, Fadi & Albitar, Khaldoon & Hussainey, Khaled & Venkatesh, VG, 2022. "Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG)," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    5. Jun Xie & Wataru Nozawa & Michiyuki Yagi & Hidemichi Fujii & Shunsuke Managi, 2019. "Do environmental, social, and governance activities improve corporate financial performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 286-300, February.
    6. Marco Taliento & Christian Favino & Antonio Netti, 2019. "Impact of Environmental, Social, and Governance Information on Economic Performance: Evidence of a Corporate ‘Sustainability Advantage’ from Europe," Sustainability, MDPI, vol. 11(6), pages 1-26, March.
    7. Ali Meftah Gerged & Lara Mohammad Al-Haddad & Meshari O. Al-Hajri, 2020. "Is earnings management associated with corporate environmental disclosure?," Accounting Research Journal, Emerald Group Publishing Limited, vol. 33(1), pages 167-185, January.
    8. Bhattacharyya, Asit & Rahman, Md Lutfur, 2019. "Mandatory CSR expenditure and firm performance," Journal of Contemporary Accounting and Economics, Elsevier, vol. 15(3).
    9. Mohan Fonseka & Theja Rajapakse & Gao‐Liang Tian, 2019. "The Effects of Environmental Information Disclosure and Energy Types on the Cost of Equity: Evidence from the Energy Industry in China," Abacus, Accounting Foundation, University of Sydney, vol. 55(2), pages 362-410, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Ruchuan & Gao, Weiyan & Chen, Shanshan & Zhou, Li & Li, Aijun, 2024. "Dose digital transformation contribute to improving financing efficiency? Evidence and implications for energy enterprises in China," Energy, Elsevier, vol. 300(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gaurav Jyoti & Ashu Khanna, 2024. "How does sustainability performance affect firms' market performance? An empirical investigation in the Indian context," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 20457-20483, August.
    2. Maha Faisal Alsayegh & Rashidah Abdul Rahman & Saeid Homayoun, 2020. "Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure," Sustainability, MDPI, vol. 12(9), pages 1-20, May.
    3. Rashidah Abdul Rahman & Maha Faisal Alsayegh, 2021. "Determinants of Corporate Environment, Social and Governance (ESG) Reporting among Asian Firms," JRFM, MDPI, vol. 14(4), pages 1-13, April.
    4. Elena Ferrer & Francisco J. López‐Arceiz & Cristina del Rio, 2020. "Sustainability disclosure and financial analysts' accuracy: The European case," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 2939-2952, December.
    5. Wayne Fu & Che‐Ping (Jack) Su, 2021. "The implications of efficiency differences in sustainable development: An empirical study in the consumer product industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2489-2504, July.
    6. Victoria Bogdan & Claudia Diana Sabău-Popa & Marcel-Ioan Boloș & Dorina-Nicoleta Popa & Mărioara Beleneși, 2022. "Tracking Waste Management Information Disclosure Behavior Connected to Financial Performance through Moderating Variables," IJERPH, MDPI, vol. 19(20), pages 1-25, October.
    7. Giovanni Cardillo & Ennio Bendinelli & Giuseppe Torluccio, 2023. "COVID‐19, ESG investing, and the resilience of more sustainable stocks: Evidence from European firms," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 602-623, January.
    8. Simona Galletta & Sebastiano Mazzù & Valeria Naciti, 2021. "Banks' business strategy and environmental effectiveness: The monitoring role of the board of directors and the managerial incentives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2656-2670, July.
    9. Marcia Sierdovski & Luiz Alberto Pilatti & Priscila Rubbo, 2022. "Organizational Competencies in the Development of Environmental, Social, and Governance (ESG) Criteria in the Industrial Sector," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    10. Mohd Yousuf Javed & Mohammad Hasan & Mohd Aqil & Mohd Ziaur Rehman & S. A. Atif Salar, 2024. "Exploring Sustainable Investments: How They Drive Firm Performance in Indian Private and Publicly Listed Companies," Sustainability, MDPI, vol. 16(16), pages 1-16, August.
    11. Yu Sang & Kannan Loganathan & Lu Lin, 2024. "Digital Transformation and Firm ESG Performance: The Mediating Role of Corporate Risk-Taking and the Moderating Role of Top Management Team," Sustainability, MDPI, vol. 16(14), pages 1-18, July.
    12. Anrafel Souza Barbosa & Maria Cristina Basilio Crispim Silva & Luiz Bueno Silva & Sandra Naomi Morioka & Vinícius Fernandes Souza, 2023. "Integration of Environmental, Social, and Governance (ESG) criteria: their impacts on corporate sustainability performance," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-18, December.
    13. Bruna, Maria Giuseppina & Loprevite, Salvatore & Raucci, Domenico & Ricca, Bruno & Rupo, Daniela, 2022. "Investigating the marginal impact of ESG results on corporate financial performance," Finance Research Letters, Elsevier, vol. 47(PA).
    14. Hoang, Thi Hong Van & Pham, Linh & Nguyen, Thanh Thi Phuong, 2023. "Does country sustainability improve firm ESG reporting transparency? The moderating role of firm industry and CSR engagement," Economic Modelling, Elsevier, vol. 125(C).
    15. Khan, Muhammad Arif, 2022. "ESG disclosure and Firm performance: A bibliometric and meta analysis," Research in International Business and Finance, Elsevier, vol. 61(C).
    16. Thi Ngan Pham & Phung Phi Tran & Minh-Hieu Le & Hoang Nhi Vo & Cong Dat Pham & Hai-Dang Nguyen, 2022. "The Effects of ESG Combined Score on Business Performance of Enterprises in the Transportation Industry," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    17. Mochales, Gerardo & Blanch, Javier, 2022. "Unlocking the potential of CSR: An explanatory model to determine the strategic character of CSR activities," Journal of Business Research, Elsevier, vol. 140(C), pages 310-323.
    18. Ali Meftah Gerged, 2021. "Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 609-629, January.
    19. Ali Meftah Gerged & Eshani Beddewela & Christopher J. Cowton, 2021. "Is corporate environmental disclosure associated with firm value? A multicountry study of Gulf Cooperation Council firms," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 185-203, January.
    20. Greta Falavigna & Roberto Ippoliti, 2022. "Financial constraints, investments, and environmental strategies: An empirical analysis of judicial barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2002-2018, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16699-:d:1002410. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.