A Study On The Impact Of Environmental Information Disclosure Quality On Exogenous Financing

Environmental information disclosure is an important mechanism in the development of green finance,and is also the prerequisite for ecological environmental protection.In the long run,the benefits of environmental protection far outweigh the costs,but in the context of China’s largely voluntary disclosure system,it is difficult to make environmental disclosure work and be as effective as it should.Companies clearly have no incentive to disclose information,and problems such as false,incomplete and late disclosures are widespread.Worse,companies that are unwilling to disclose accurate environmental information in a timely manner can gain a competitive advantage by reducing their costs.If this continues,not only will the phenomenon of "bad money drives out good" appear,affecting the sustainable development of society and economy,but also increasing environmental pollution and waste of resources,seriously endangering the personal health of residents.Therefore,it is important to study the quality of corporate environmental information disclosure.Based on the relevant theories and literature at home and abroad,this paper takes A-share listed companies with heavy pollution from 2014-2021 as a sample,uses ESG rating data as an indicator to measure the quality of environmental information disclosure,and establishes a regression model using Stata software to study the relationship between the quality of environmental information disclosure and exogenous financing of heavily polluting listed companies.Finally,delves into individual cases to explore in detail the role of environmental information disclosure quality on exogenous financing of companies.The study finds that,on the one hand,the quality of environmental disclosure is not related to equity financing.There is a lack of attention to environmental information disclosure by capital market investors.Environmental information disclosure quality problems neither cause significant negative reactions in the stock market nor hardly affect the size of a company’s equity financing.On the other hand,the quality of environmental information disclosure has a positive relationship with debt financing.Creditors take into account the quality of environmental information disclosed by listed companies in heavy polluting industries,and companies with higher quality of environmental information disclosure are able to obtain more debt financing,while the opposite significantly reduces the availability of their debt financing.In addition,banks will be more prudent in lending long-term money.Based on the above findings,this paper puts forward suggestions such as improving the top-level design of environmental information disclosure,establishing a sound relevant legal system,strengthening external regulation and constraints,enhancing the cooperation of incentives and punishments,improving listed companies’ awareness of environmental responsibility,strengthening the talent pool and actively cultivating third-party rating agencies.