The Impact Of Carbon Disclosure On Firm Value Under The Path Of Capital Cost

Climate changes are the hot topic to which the whole world is paying attention at present. Countries all over the world are carrying out the work to cut emissions of greenhouse gases in order to slow down climate changes. China, as one of the countries which have signed the Copenhagen Accord, is willing to undertake the duty of reducing emission. Supervising the carbon emission of enterprises is clearly in order. With the Carbon Emissions Trading Market on trial in seven provinces in 2013, the attention paid to carbon information of enterprises has raised considerably. The carbon information of a company becomes an essential factor when investors judge its value. Existing studies are mainly concerned about the frame construction and influencing factors of carbon disclosure, but rarely pay attention to its economic consequences. This article analyses the economic consequences of the carbon disclosure on the perspective of firm value, and discusses its mechanism under the path of capital cost.The text mainly researches the relation between carbon disclosure and firm value under the path of capital cost. Based on available studies, this article first sets a boundary to the conception of carbon disclosure and environmental information disclosure, analyses the effect to firm value and capital cost through related theories, and discusses the function of capital cost when the carbon disclosure creates enterprise value. Then on the base of theoretical analysis, the paper formulates the hypothesis, defines the variables and establishes the models. Based on the sample of the motherboard companies which report the social responsibility from 2011 to 2013, the article first analyses the current situation of carbon disclosure in China descriptively. Then it comes to the correlation analysis among variables. Afterwards, it dissects the relation among carbon disclosure, capital cost and firm value by means of regression model. Finally, it checks the mediating effect of capital cost. Studies have shown that carbon disclosure has a positive correlation with firm value and a negative one with capital cost. Capital cost serves as a mediating variable when carbon disclosure affects firm value.At the end of this article, we suggest that enterprise should perfect the management system of carbon emissions, the government should establish a unified standard for carbon disclosure, supervision departments should strengthen supervision, and stakeholders should establish awareness of carbon emissions. Multi-agent should work together to raise the level of carbon disclosure of enterprises in our country.