Local Fiscal Pressure,Corporate Pollution Levels And Debt Financing

Over the past 40 years of reform and opening up,China’s economy has developed rapidly.However,with economic development,environmental problems have become increasingly prominent,and have become an important factor hindering the sustainable development of China’s economy.Therefore,how to protect the environment while developing the economy has become one of the important tests faced by China’s economic development in the new period.As the main body of social economy,enterprises promote the socio-economic development and the employment of residents,but also cause serious environmental resource destruction problems.In order to reduce corporate pollution and encourage them to fulfill their environmental responsibility,in addition to administrative constraints,they can also try to use economic means.The green credit policy requires banks to strictly control high energy consumption and high pollution credit investment,and at the same time further increase credit support for environmental protection companies and projects.Therefore,it is necessary to study the impact of corporate pollution levels on their debt financing.However,there are many factors that affect the debt financing of enterprises.Due to the different financial pressures faced by the governments of different regions where enterprises are located,the requirements for environmental protection of enterprises are also different.Therefore,on the basis of studying the impact of corporate pollution level on debt financing,this paper adds the financial pressure factors of the region where the enterprise is located,and improves the impact mechanism of corporate pollution level on debt financing.This paper studies corporate debt financing from the perspective of non-economic factors such as the level of corporate pollution,which enriches the theoretical system of corporate debt financing.This article first describes the background,purpose,and significance of the study,and introduces the research content and methods of this article.Secondly,review and comment on the domestic and foreign relevant literature on corporate pollution levels,debt financing and local fiscal pressure.Again,this article introduces the basic concepts and causes of corporate pollution levels,debt financing,and local fiscal pressure.Based on the information asymmetry theory,it explains the reasons for the existence of financing constraints.Through stakeholder theory,prioritized financing theory,and information asymmetry theory And Porter Hypothesis analyzes the impact mechanism of corporate pollution levels on its debt financing,and on this basis,puts forward two hypotheses in this paper.In the empirical research part,based on the experience of the predecessors,the sewage fee paid by the unit operating income is used as the proxy variable to measure the pollution level of the enterprise.Taking the2012-2018 A-share listed companies in the heavily polluting industry in Shanghai as a sample,manually collect the sewage fee information in the sample company’s annual report,and local financial revenue and expenditure data are taken from the "China City Yearbook" and "China City Statistical Yearbook",collected other economic indicators of enterprises from CSMAR and wind databases.Regression analysis found that companies with low pollution levels are more likely to obtain debt financing.Then the regional fiscal pressure is measured by the difference between the fiscal expenditure and income of the city where the enterprise is located and the fiscal revenue,and the consideration of the financial pressure in the region where the enterprise is located is added.The study found that when the regional fiscal pressure is greater,the pollution level of the company has less impact on its debt financing.In order to verify the robustness of the research results,a regression test was conducted using the more polluting manufacturing companies as samples to verify the robustness of the empirical results.Finally,according to the conclusions of the study,local government,enterprises and investors are given relevant policy recommendations from three perspectives.