The Effects of Environmental Information Disclosure and Energy Types on the Cost of Equity: Evidence from the Energy Industry in China.
This study investigates whether environment information disclosure (EID) and different energy sources have any effect on the cost of equity capital (COEC), and how the EID effect on the COEC varies with different types of energy. We find a negative relationship between EID and COEC. Thus, EID reduce...
| Publicado en: | Abacus Vol. 55; no. 2; pp. 362 - 411 |
|---|---|
| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jun2019
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=137028013&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 137028013 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Jun2019 vid: 55 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 137028013 10.1111/abac.12157 ppf: 362 ppct: 49 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 421KB tig: atl: The Effects of Environmental Information Disclosure and Energy Types on the Cost of Equity: Evidence from the Energy Industry in China. aug: au: Fonseka, Mohan Rajapakse, Theja Tian, Gao‐Liang affil: Xi'an Jiaotong University su: Disclosure Capital costs Environmental reporting Energy industries Stocks (Finance) China sug: subj: China Disclosure Capital costs Environmental reporting Energy industries Stocks (Finance) keyword: Cost of equity Energy firms Energy types Environmental information disclosure ab: This study investigates whether environment information disclosure (EID) and different energy sources have any effect on the cost of equity capital (COEC), and how the EID effect on the COEC varies with different types of energy. We find a negative relationship between EID and COEC. Thus, EID reduces the agency problem and information asymmetry between firms and investors, and also supports the legitimacy and stakeholder theories' explanation of the effect of EID on the COEC in China. We find a positive (negative) relationship between some energy sources such as gas, fossil‐fuelled thermal power generation, and oil (hydro‐power generation, solar, and wind) and the COEC. The finding explains the polluting nature, risk of replacement, regulation risk, and regulatory costs of different energy types, and those risks have been accounted by investors. We also find that when gas, fossil‐fuelled thermal power, and oil firms increase their level of EID, their COEC increases, whereas when power grid, solar, and wind power firms increase their level of EID, their COEC decreases. This finding is supported by the combination of polluting nature, risk of replacement, regulation risk, and regulatory costs of different energy sources and legitimacy and stakeholder theories. Our findings are robust to several endogeneity checks and additional tests for several unique features of Chinese capital markets. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2019 holdings: @attributes: islocal: N |
|---|