Environmental accounting practices and cost of capital of enterprises in Vietnam

Anh, Nguyen Huu; Soa, Nguyen La; Hanh, Ha Hong

doi:10.1080/23322039.2020.1790964

Cited by 5 publications

(2 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In similar vein, Piechocka-Kaluzna et al (2021) reported significant negative correlation between ESG and its sub dimensions and cost of finance. Huu Anh et al (2020) reported evidence that firms disclosing more accounting information related to environmental issues tend to have lower cost of finance than those who do not. Palea and Drogo.…”

Section: Literature Reviewmentioning

confidence: 99%

Environmental performance and cost of finance: evidence from emerging markets

Temiz

2022

SAMPJ

View full text Add to dashboard Cite

Purpose This study aims to investigate the effects of environmental performance (EP) of firms and its pillars on both cost of debt and equity (COF) in emerging market context. Design/methodology/approach This study uses 4,152 firm-year observations covering the years 2015–2019 from 17 emerging market countries. Data are obtained from ASSET4 and Datastream databases. OLS method with country, industry and year fixed effects are utilized in the main analysis of the study. Several robustness tests including 2SLS IV method are performed to test the sensitivity of the results. Findings The results suggest that aggregate EP of firms has reducing effects on both cost of debt and equity. All EP pillars have negative effects on the cost of debt while only emission performance has negative significant impact on cost of equity. This reveals that the effects of EP on cost of equity is mostly driven by emission performance of firms. Practical implications Given differences between emerging and developed countries in terms of environmental regulations, infrastructure and technology, it is suggested that regulatory bodies and governments urge firms to implement environmentally friendly policies. Besides, implications for emerging markets for capturing more shares from responsible investments are provided. Social implications Although the adoption and implementation of environmentally-friendly policies are costly, improved environmental performance has financial advantages, including lower COF for firms. Therefore, firms would benefit from improving their EP in order to protect the nature, as well as to enjoy the economic benefits of better EP. Originality/value This study confirms that improved environmental performance has financial advantages for firms in emerging markets, such as lower COF.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Environmental performance and cost of finance: evidence from emerging markets

Temiz

2022

SAMPJ

View full text Add to dashboard Cite

show abstract

“…Many previous studies related to the cost of capital have been carried out include governance (AlHares, 2020; Arslan, 2019;Khan et al, 2020;Pham et al, 2012), litigation risk (Qin et al, 2020), corporate social responsibility disclosure (Atan et al, 2018;Ellili, 2020;Gjergji et al, 2021;Johnson, 2020;Rahmasari, 2013), economic policy uncertainty (Xu, 2020), risk disclosure (Almania, 2019;Liu, 2020), leverage (Battisti et al, 2020;Rajverma et al, 2019), environmental disclosure (Anh, 2020;Haninun et al, 2019), integrated reporting (Vena et al, 2019), ownership structure (Rajverma et al, 2019), dividend policy (Rajverma et al, 2019), disclosure quality (Ezat, 2019), intellectual capital disclosure (Gomes et al, 2019), employee shareholding (Aubert et al, 2017), information risk (Safdar & Yan, 2016), earnings management (Patro & Kanagaraj, 2016), board of directors concentration (Upadhyay, 2014), excess control (Bozec et al, 2014), and earnings quality (Apergis et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Corporate Social Responsibility Disclosure, Intellectual Capital Disclosure, Risk Disclosure, Cost of Capital: Moderating Role of Earnings Management

Fauzi,

Firmansyah

2023

aaj

View full text Add to dashboard Cite

Purpose : This study investigates the effect of corporate social responsibility, intellectual capital disclosure, and risk disclosure on the cost of capital and the roles of earnings management in moderating these effects. Method : This study employs secondary data from annual reports and financial statements of 79 manufacturing companies listed on Indonesia Stock Exchange from 2016 to 2020. Using purposive sampling, the sample obtained in this study is 395 observations. The data were analyzed using multiple linear regression for panel data. Findings : This study finds that corporate social responsibility is negatively associated with cost of capital. Other than that, intellectual capital disclosure and risk disclosure are not associated with cost of capital. Moreover, earnings management failed to moderate the association between corporate social responsibility and the cost of capital. This study also found that earnings management strengthens the negative impact of intellectual capital disclosure on the cost of capital. In contrast, earnings management weakens the negative effect of risk disclosure on the cost of capital Novelty : This study places the moderating role of earnings management on testing the three non-financial disclosures on the cost of capital so that this study can complement the development of financial accounting research related to non-financial information. Keywords : Sustainability Disclosure; Intellectual Capital Disclosure; Risk Disclosure; Earnings Quality; Cost of Capital

show abstract