Environmental Information Disclosure,internal Control And Debt Financing Costs

Nowadays,the business development of enterprises increasingly depends on their financing capabilities.Strong financing capabilities mean that enterprises have sufficient funds to expand their own strength,so that they can be invincible in the increasingly fierce market competition.Generally,the stronger the financing ability of the enterprise,the lower the debt financing cost,so the research on the influencing factors of debt financing cost becomes more meaningful.In 2017,in order to strengthen the disclosure of environmental information by listed companies,China 's Environmental Protection Agency and the China Securities Regulatory Commission jointly signed the “Cooperation Agreement on Environmental Information Disclosure for Listed Companies”.Environmental information disclosure is becoming an important business card for listed companies.Since the Ministry of Finance,the China Securities Regulatory Commission and other ministries formulated and issued the "Basic Standards for Internal Control of Enterprises" in 2008,the quality of internal control of enterprises has also been paid more and more attention.With the implementation of China's "green credit" policy in recent years,research on environmental information disclosure,internal control and debt financing costs has become particularly important.Good environmental information disclosure means that the enterprise is in good business condition and has assumed more social responsibilities,so it can theoretically reduce the debt financing cost of the enterprise.The quality of internal control represents the internal management and operation efficiency of the enterprise.In theory,the higher the quality of internal control,the lower the debt financing cost of the enterprise.However,both the environmental information disclosure and the quality of internal control can theoretically reduce the cost of debt financing,but the mechanism of the two acting on the cost of debt financing is very similar.When the two act on the cost of debt financing,will it produce "1 + 1" > 2 ",or how does it work together.This article combs the relevant literature at home and abroad.This article first theoretically explores the influencing factors of debt financing costs,and separately analyzes the ways in which internal control and environmental information disclosure reduce the company 's debt financing costs.The impact of the combined effect of debt financing costs.Secondly,through the conceptual definitions of environmental information disclosure,internal control quality and debt financing costs,as well as the inductive analysis of related theories such as prioritized financing theory,signal transmission theory,information asymmetry theory.Finally,the related variables are sorted out and the multiple linear regression model is designed according to the relevant assumptions,and the empirical analysis is carried out with the 2014-2018 Shanghai and Shenzhen A-share listed heavily polluting enterprises as the initial sample.Through empirical research results,this paper finds: the higher the level of environmental information disclosure of heavily polluting enterprises,the lower the cost of debt financing;the stronger the effectiveness of the internal control quality of heavily polluting enterprises,the lower the cost of debt financing;in non-state-owned heavy pollution Among enterprises,the impact of environmental information disclosure and internal control quality on debt financing costs is higher than that of state-owned heavily polluting enterprises;when the environmental information disclosure and internal control quality of heavily polluting enterprises work together on debt financing costs,internal control quality and environmental information There is a substitution effect relationship between the quality of disclosure.Finally,based on the research conclusions,this article puts forward relevant suggestions from two aspects of environmental information disclosure and internal control quality.