Green Social Responsibility and Company Financing Cost-Based on Empirical Studies of Listed Companies in China

Duan Ji, Yuyu Liu, Lin Zhang, Jingjing An and Wenyan Sun
Additional contact information
Duan Ji: School of Accounting, Shandong University of Finance and Economics, Ji’nan 250014, Shandong, China
Yuyu Liu: School of Accounting, Shandong University of Finance and Economics, Ji’nan 250014, Shandong, China
Lin Zhang: School of Law and Economics, Shandong University of Technology, Zibo 255000, Shandong, China
Jingjing An: School of Law, Shandong University of Technology, Zibo 255000, Shandong, China
Wenyan Sun: Agricultural Bank of China, Qingdao 266000, Shandong, China

Sustainability, 2020, vol. 12, issue 15, 1-16

Abstract: Taking Chinese A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2018 as research samples, this paper studies the relationship between green corporation social responsibility (CSR) and financing cost of Chinese companies by means of moderating effect and multiple regression analysis. It is found that, for companies, the better the performance of green social responsibility, the lower the financing cost. However, it is also found that for companies with different pollution degrees and natures of property rights, the financing cost reduction effects due to green social responsibility are quite different. Compared with low-polluting companies, the financing cost reduction effect arisen by green CSR will be weakened for high-polluting companies. Compared with private companies, the financing cost reduction effect from green CSR will also be weakened for state-owned companies. To sum up, the research results of this paper show that there is a significant saving effect on financing cost for companies undertaking green CSR, and companies’ characteristics of pollution degree and property right can regulate the impact of green CSR on financing cost. The conclusion of this paper can encourage companies to take green social responsibility actively and reduce the cost of financing.

Keywords: green corporation social responsibility (CSR); cost of financing; nature of property rights; high-polluting company (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/15/6238/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/15/6238/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:15:p:6238-:d:393795

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().