An Empirical Study On The Quality Of Environmental Information Disclosure,Internal Control And The Cost Of Debt Financing

In recent years,with the rapid development of China’s social and economic development,the concept of environmental protection has become more and more popular,and the stakeholders of enterprises have become more concerned about the impact on the environment in the process of development.At the same time,with the implementation of China’s "green credit" policy,creditors,as important stakeholders of enterprises,will also focus on the fulfilment of the enterprises’ environmental protection responsibilities and the risk of environmental damage in the process of debt financing.Therefore,creditors will consider the quality of environmental information disclosure as an important basis for credit approval,and the higher the quality of environmental information disclosure,the more information will be provided to creditors,thus alleviating the information asymmetry between the two.Therefore,in the process of debt financing,it is particularly important to study the interplay between the quality of environmental information disclosure,internal control and the cost of debt financing.This study is divided into five parts in total.The first part introduces the background of this paper,clarifies the significance of this paper,compares the current status of research at home and abroad,and explains the research methods used and the points of innovation.The second part explains the concepts and theoretical foundations of environmental information disclosure,debt financing costs,internal control and heavy polluting industries.The third part puts forward the research hypothesis through theoretical analysis,selects the sample and relevant variables,and constructs a multiple regression model.Part IV conducted an empirical analysis to examine the correlation between environmental information disclosure,internal control and the cost of debt financing through correlation analysis,and tested the hypotheses through regression analysis and robustness analysis to further determine the interaction and the role relationship between environmental information disclosure,internal control and the cost of debt financing.The fifth section summarises and analyses the findings of the study and makes recommendations from the perspectives of government,enterprises and investors.The research samples selected in this paper are listed companies in the heavy pollution industry in A-share Shanghai and Shenzhen markets from 2007-2021.The relationship between environmental information disclosure quality,internal control and debt financing cost is studied,a regression model is constructed,and an empirical analysis is conducted to conclude that the quality of environmental information disclosure and debt financing cost of listed companies in the heavy pollution industry show a significant negative correlation,i.e.heavy pollution industry The empirical analysis concluded that the quality of environmental information disclosure of listed companies in the heavy pollution industry has a significant negative correlation with the cost of debt financing.At the same time,the improvement of the quality of internal control of listed companies in the heavy pollution industry will make the negative relationship between environmental information disclosure and debt financing cost more significant.Through this study,on the one hand,it plays a positive role in promoting the sustainable development of listed companies in the heavy pollution industry in China,and on the other hand,it serves as a practical reference and reference for similar studies in other industries.