Academic journal article Canadian Social Science

Environmental Information Disclosure of Listed Company Study on the Cost of Debt Capital Empirical Data: Based on Thermal Power Industry

Academic journal article Canadian Social Science

Environmental Information Disclosure of Listed Company Study on the Cost of Debt Capital Empirical Data: Based on Thermal Power Industry

Article excerpt


Environmental pollution incidents in recent years, at the cost of sacrificing the environment's mode of economic development are facing a deep review. This 2008 year to 2012 year in Shanghai and Shenzhen-listed power companies for the study, from the point of view of debt financing effect of environmental information disclosure on corporate debt, the cost of capital. Study: Environmental information disclosure levels significantly impact corporate debt financing costs, full environmental disclosure of listed companies of their lower unit cost of debt capital; overall low level of environmental disclosure in the thermal power industry, but increasing trend. Theoretical study and institution-building, as well as enterprise autonomy make relevant recommendations.

Key words: Debt capital cost; Environmental information disclosure; Thermal power


Research the origins of environmental accounting in the Western 20 Century 40 Era of social responsibility, and to 1971 Mons written study of the transformation of the social costs of pollution control and 1973 Year Marin issued the accounting problems of pollution as a milestone. Domestic 1992 year GE Jiashu, Professor in accounting study, published in the 1990's a new wave of accounting theory in the West-as the starting point of the green accounting theory, than abroad, domestic research started late. Become a research focus on environmental accounting.

Environmental protection is placed in front of sustainable economic development and deepens reform of socialist market economy as an important task. Environmental protection departments, stock exchanges, securities Department have promulgated a series of guidelines on environmental information disclosure of listed company papers, with a view to promoting environmental governance. How is the environmental information disclosure? Are bound by the enterprise's environmental behavior? The economic consequences of environmental information disclosure of how? Articles from the perspective of environmental information disclosure of debt capital cost impact through correlation analysis of empirical studies.


of debt capital are important influencing factors of enterprise funding and management decisions, and business operators believe that voluntary information disclosures to help reduce the cost of capital (Graham et al., 2005). Verrecchia (2001), the studies found, information disclosure can increase investor awareness of enterprises, reduce the degree of asymmetry of information, improve the level of investor risk-sharing.

disclosure by investors predict the impact risk capital cost Barry Brown (1985), the earliest differences are significant by two sets of information content of stock portfolio analysis, studies predict how risk affects the cost of capital. Findings on information content of stock, investors predict return variance is smaller, require lower rates of remuneration, disclosure of information affecting risk prediction in turn have an impact on return on equity. Lewellen and Shanken (2002), by constructing price model proves that predict risk in dividends of listed companies from the incompleteness of the information. Deviate they agreed that the real return on equity capital asset pricing model is due to the information asymmetry between investors and listed companies has led to parameter uncertainty.

Li (2010), set off from capital markets accounting conservatism study on the cost of debt capital, found that compared to the creditors and shareholders, are powerless. Timely and full information disclosure can ease the contradiction between the two, and provide timely risk signal, thus safeguarding the effectiveness of debt contracts, reduce the cost of debt capital.

Enterprises as members of society, should shoulder social responsibilities. Social responsibility information disclosure can be predicted by reducing investor risk, lower transaction costs, investors' preferences and other ways to influence the cost of capital for social responsibility (Richard & Welker, 1999). …

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