TITLE:
Will Green Development Increase the Cost of Debt Financing for Heavily Polluting Companies?
AUTHORS:
Yanfei Xiong, Yunxuan Luo
KEYWORDS:
Green Development, Corporate Social Responsibility Performance, Cost of Debt Financing for Heavily Polluting Companies
JOURNAL NAME:
Modern Economy,
Vol.13 No.4,
April
22,
2022
ABSTRACT: In order to explore whether the growth of green
development level increases the debt financing cost of heavily polluting
companies, this paper takes the green development level index, corporate social
responsibility performance (CSR) and corporate debt financing cost as the main
research variables, and builds a fixed-effect regression model to get the
results: For non-state-owned companies, there is a significant negative
correlation between the level of green development and the cost of debt
financing which means that the higher green
development level of the government in the region where the heavily polluting
industry is located, the lower the debt financing cost of the enterprise; CSR
is negatively correlated with the cost of debt financing, indicating that
improving CSR will help reduce the cost of corporate debt financing. At the
same time, the intersection of green development level and CSR has a
significant negative correlation with the debt financing cost of heavily
polluting companies, but the correlation coefficient is not high, indicating
that CSR plays a significant partial intermediary role in the relationship
between green development levels and debt financing costs. Finally, this paper
puts forward countermeasures and suggestions from the aspects of government
environmental regulation and supervision and enterprise internal management.