Research On The Impact Of Enterprise Climate Risk On Debt Financing Cost

In recent years,due to the increasing impact of climate risk brought by climate change,countries have signed relevant agreements and implemented measures to try to stabilize the global climate.Climate change will have different degrees of impact on all walks of life,and Chinese enterprises have gradually begun to pay attention to the information disclosure of eco-climate,and market participants have also begun to pay attention to the information and trends of enterprises in this respect.However,climate risk is characterized by diversification and complexity,and it is difficult to quantify the sensitivity of the company about climate risk.Therefore,it is particularly important to study the specific impact of climate risk on enterprises.There are still differences in the existing research on the impact of climate risk on financial markets,and there is no research on the impact of climate risk from the perspective of enterprises.Based on this background,this paper takes all A-share listed companies as research samples,and makes an empirical study on the impact of corporate climate risk on corporate debt financing costs and its impact mechanism.Through empirical research,this paper draws the following conclusions: corporate climate risk can significantly increase the cost of debt Financing.The research on the impact mechanism shows that corporate climate risk can affect the cost of debt Financing by influencing its default risk and gross profit rate of sales.That is,the higher the corporate climate risk is,the higher its default risk will be,and thus the cost of debt Financing will be increased;The higher the enterprise’s climate risk is,the lower the gross profit rate of sales will also be,thus increasing the cost of debt Financing.The adjustment effect test shows that the cost of debt Financing of enterprises with higher marketization degree in their provinces is more sensitive to the impact of climate risk;Compared with non-state-owned enterprises,state-owned enterprises’ debt Financing costs are more sensitive to their own climate risks.Based on the research findings,this article proposes two policy recommendations: firstly,enterprises should further enhance their climate risk awareness and incorporate it into the risk management system;Secondly,regulatory authorities should improve the information disclosure system for corporate climate risk and standardize and clarify its measurement methods.The innovation of this article mainly lies in the use of text analysis method to comprehensively analyze the comprehensive climate risk of enterprises;The second article studies the impact of corporate climate risk on their own financing costs and its impact mechanism from the perspective of enterprises,broadening the relevant research perspectives.The research conclusion of this article has certain significance for enterprises to strengthen the identification and management of their own climate risks,regulatory agencies to supervise and manage enterprise climate risks,and market investors to seek reasonable risk premiums for enterprise climate risks.