Impact of Environmental Violations on Firm's Access to Finance in China: Evidence from IPE Database
Authors: 
Qianwei Ying, Zhao Zhang, Siyi HeAuthors Info & Claims
Qianwei Ying, Zhao Zhang, Siyi HeAuthors Info & ClaimsPages 265 - 269
Abstract
By innovatively utilizing environmental violation data from the IPE database and constructing a stacked cohort regression, we investigate the reactions of government and market participants to corporate environmental violations from the perspective of firms’ access to finance. We find that firms violating environmental regulations experience a significant decrease in government-guided bank loan financing but an increase in market-oriented equity financing. The results are robust through the parallel trend assumption test and the propensity score matching (PSM). Through empirical and systematic analytical methods, this study investigates how environmental violations impact firms’ access to finance, revealing the difference between government and market participant goals in environmental issues.
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Index Terms
- Impact of Environmental Violations on Firm's Access to Finance in China: Evidence from IPE Database
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Published In
August 2024
465 pages
ISBN:9798400716997
DOI:10.1145/3695652
Copyright © 2024 ACM.
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Association for Computing Machinery
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Publication History
Published: 15 October 2024
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- the Major Program of National Fund of Philosophy and Social Science of China
- China University Industry-University-Research Innovation Fund Project
- Sichuan University Postdoctoral Fund
- Humanities and Social Science Fund of Ministry of Education of China
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IMMS 2024
IMMS 2024: 2024 the 7th International Conference on Information Management and Management Science
August 23 - 25, 2024
Beijing, China
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