Corporate environmental responsibility, financial performance, and international bank loans: Evidence from China

Yin-Siang Huang and You-Xun Lu

MPRA Paper from University Library of Munich, Germany

Abstract: In the context of sustainable development and “going global” strategies, Chinese firms are paying more attention to corporate environmental responsibility (CER). Using a sample of Chinese firms from 2010-2019, this study examines the impact of CER on corporate financial performance (CFP) and international bank loans. We find that the proactive disclosure of non-hazardous industrial waste (NHIW) emissions has no significant effect on the return on assets (ROA) but significantly increases the return on equity (ROE). In addition, our results show that international banks will offer lower loan spreads and longer loan maturities to firms with better environmental performance.

Keywords: Non-hazardous industrial waste; corporate environmental responsibility; financial performance; international bank loans (search for similar items in EconPapers)
JEL-codes: G32 G34 Q53 Q56 (search for similar items in EconPapers)
Date: 2022-01-26
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-cna and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111682

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