Carbon Information Disclosure And The Cost Of Equity Financing

The concept of developing low-carbon economy has been widely accepted by all countries in the world.Carbon emissions management is an important link in the development of low-carbon economy.The impact of carbon emissions management on the survival and development of human beings has been paid more and more attention.As a tool for enterprises to communicate and communicate with their outside world on carbon emissions management,carbon information disclosure plays an important role in understanding our carbon management activities and delivers the positive information to the public,investors,regulators,and so on.How information disclosure affects the cost of equity financing is a key issue in academic circles for a long time.Taking the enterprise carbon disclosure as the starting point,and based on Chinese CDP report,the paper exploring the influence of information disclosure on the cost of equity financing,furthermore,the paper exploring the influence of marketization,institutional investors,government regulation on the relationship.on the one hand,the research on the economic consequences of carbon disclosure is extended to the financing level,on the other hand,the paper will expand related research on the mechanism of the effect of Carbon Disclosure on the cost of equity financing.This paper takes the listed companies involved in the 2011-2015 CDP report in China as the sample.The OJN model and PEG model were used to calculate the equity financing cost,and the carbon disclosure level was determined from two dimensions of CDP report and corporate social responsibility report,the factors that affect the cost of equity financing include the size of the enterprise,the volatility of the income,the book to market ratio,the beta coefficient,the proportion of tradable shares,etc.are been consideration,furthermore,the paper exploring the influence of marketization,institutional investors,government regulation on the relationship.To examine how different environmental conditions effect the relationship of carbon disclosure and the cost of equity financing,to make the conclusion more abundant.The results showing that: Firstly,the carbon information disclosure can reduce the information asymmetry and liquidity risk of the enterprise,so as to reduce the cost of equity financing.Secondly,compared with the low marketization region,when a companyin the higher marketization region,the effect of carbon information disclosure reducing the cost of equity financing will be stronger.Thirdly,compared with non-institutional investors holding enterprises,in the institutional investors holding enterprises,the effect of carbon information disclosure reducing the cost of equity financing will be stronger.Fourthly,compared to the small government regulatory intensity areas,in the higher government regulatory intensity areas,the effect of carbon information disclosure reducing the cost of equity financing will be stronger.As the carbon information disclosure system is not perfect in our country,the results of this paper can provide good empirical evidence for the economic consequences of corporate carbon information disclosure,and promote the activity of carbon information disclosure.At the same time,the paper explored the process of marketization,institutional investors,government regulation how to effect the relationship of carbon disclosure and the cost of equity financing,it can help to improve the market evaluation mechanism,improve the governance of institutional investors and optimize government regulation,so as to promote the development of low-carbon economy in China.