Carbon Information Disclosure Quality,Internal Control Effectiveness And Debt Financing Cost

With the rapid development of Chinese economy and a deep understanding of the concept of environmental protection,How to promote sustainable economic development under the condition of environmental protection,has become a problem that our economic development needs.At present,the main source of pollution in China is companies that pollute the environment.A large amount of carbon dioxide is emitted in the production process,which leads to environmental damage.Reducing carbon dioxide emissions is an important pollution control measure.In order to reduce the CO2 emissions of companies,relevant departments formulated environmental policy and formulated green credit policy in2007,promoting corporate environmental protection through debt financing.Debt financing costs are one of the most important methods of corporate financing.The level of financing is an index to measure the management decisions of business leaders.According to the concept of environmental protection,after more attention has been paid to risks,problems related to environmental damage of companies.After the introduction of "green credit",banks will supervise companies to meet their social obligations,reduce CO2 emissions and improve the quality of CO2 emission information,as a prerequisite for obtaining loans.The quality of corporate carbon disclosure is high,allowing external stakeholders to obtain more corporate information,avoid information asymmetry,reduce environmental risks for companies and offer banks lower risk compensation.It is also more inclined to provide companies with financing with better quality information on CO2 emissions at lower debt financing costs.However,there is no single carbon emission information quality assurance system in China,and external stakeholders should assess the quality of such information based on the information in the Company’s Annual Report and Social Responsibility Report.Since the authenticity of the information disclosed by the company is closely related to the company’s internal control,this paper considers the efficiency of internal control as an adjustment variable.It is assumed that the higher the efficiency of internal control,the higher the quality and reliability of the CO2 information published in the report,the higher the confidence of creditors such as banks in the disclosure of CO2 information,the lower the cost of corporate debt financing,This paper discusses the influence of internal control efficiency on the quality of CO2 emission information and debt financing costs.It also provides theoretical guidelines for entrepreneurial decisions.Against this background,this paper analyzes,based on existing research results,the internal relationship and the mechanism of influence between qualitative public information on CO2 emissions,efficiency of internal control and costs of debt financing.It also makes a preliminary analysis of the current situation of information disclosure on CO2 emissions.In this paper,using the example of Shanghai deep group,a company with high pollution from2018 to 2020,it provides empirical data on the influence of information quality on debt financing costs,as well as the role of monitoring the efficiency of internal control.The results show that:（1）the quality of the emission report has a negative impact on the cost of debt financing;2)The effectiveness of internal control strengthens the negative link between the quality of reporting on CO2 emissions and the cost of debt financing.Following these conclusions,policy proposals are presented from the perspective of the government,managers,investors and shareholders.