Company Carbon Disclosure And Financing Constraints

With the frequent occurrence of global extreme climate,the coordination issue with the environment has been the focus of global economic development.The "low-carbon economy" has become the priority.The “Nineteenth Congress” put forward a series of responses to deal with climate issues,including mandatory disclosure of information.Carbon disclosure is an important worldwide accounting management activity.It is an important channel for the public and the government to obtaining information on corporate carbon emissions,carbon risks,etc.The increasing pressure of energy-saving and emission-reduction transitions has caused carbon disclosure to be constantly concerned,Making it a major focus of academic research.this research is an important part in the field of corporate emission-reduction structure adjustment.It not only enriches the company’s carbon disclosure economic consequences,non-financial information and financial information disclosure literature,but also enhances the company’s enthusiasm of carbon information disclosure.The research provides reference of disclosure strategy selection and governance for Carbon information disclosure,It also provides empirical evidence of improving the carbon disclosure system and company’s carbon disclosure level for government.There have been many useful researches on the current situation,influential factors,and economic consequences of carbon disclosure,but the most of them are based on the CDP carbon disclosure project.In addition,there are various documents on the level of disclosure of carbon information in China that have established their own standard of carbon disclosure.The research samples are seriously poor,and the universality of research conclusions doubtful.At the same time,there is little research on the relationship between carbon disclosure and financing constraints.This research will help filling this gap.This paper sorts out information asymmetry theory,signal transmission theory,principal-agent theory,cash-cash flow theory,and investment-cash flow theory.Based on theoretical analysis,it is found that in many friction factors,information asymmetry is the root cause of financing constraints.Perfect information disclosure can significantly reduce information asymmetry.Carbon information disclosure helps providing more non-financial information to outside investors such as banks,adding them to make decisions about the future performance and risks of the company.A correct judgment will reduce the risk of wrong decisions and ease financial constraints.On the one hand,Corporate executives expect to transmit positive signals on capabilities to the market through voluntary carbon information disclosure,improving corporate reputation and establishing a good corporate image,reducing the asymmetry of corporate information;on the other hand,due to the separation of ownership and control powers,agency costs happen,which makes the difference of internal and external financing costs.Increasing the quality of information disclosure can reduce the information asymmetry between companies and investors,thereby reducing the “moral risk” problem and the “adverse selection” problem.Therefore,from the perspective of carbon information disclosure,this paper learns from Li Huiyun’s carbon disclosure index evaluation system,and uses text analysis to collect data manually,analyzes empirically the impact of corporate carbon disclosure to financing constraints.The conclusions are as follow: ○1Under the same conditions,carbon information disclosure can significantly reduce the degree of financing constraints;○2Compared with state-owned enterprises,the carbon information disclosure by private enterprises has a more significant alleviation effect on financing constraints;○3 Compared with light polluting industries,carbon information disclosure has a more pronounced alleviation effect on financing constraints by companies in heavy polluting industries;○4 The mitigation effect of carbon information disclosure on financing constraints is significant in poor information environment.this research proposes to found incentive mechanism,enhance institutional development and policy guidance,improve the laws and regulations for carbon disclosure,raise low-carbon awareness among the public,and promote environmental protection concepts.