The Effects of Environmental Management and Debt Financing on Sustainable Financial Growth in the Tourism Industry

Abstract

Environmental management and sustainable financial growth are currently hot topics in academic research. This article examines the relationships among environmental management, debt financing, and sustainable financial growth in the Chinese tourism industry. The results show that environmental management and debt financing have promoted sustainable financial growth, and the overall effect of debt financing on sustainable financial growth has been affected by environmental management. After employing different methods of controlling the endogeneity, these conclusions are still robust. We also examine the mediating effect and threshold effect on environmental management, debt financing, and sustainable financial growth, and the results reveal that debt financing can mediate the effect of environmental management on sustainable financial growth and that there is nonlinear impact of debt financing on sustainable financial growth in different thresholds of environmental management. The analysis results show that the presented policy proposals promote the development of tourism companies from the aspects of debt financing and environmental management.

Environmental, Social, Governance Risk and Corporate Sustainable Growth Nexus: Quantile Regression Approach

“…Ocak and Fındık [26] used OLS and Heckman's two-stage estimation procedure to examine the impact of intangible assets on SGR and enterprise value in Turkey. Xu et al [29] applied the two-stage least squares regression to explore the impacts of debt financing and environmental management on SGR in the Chinese tourism industry. Kuo and Chang [39] also applied the two stages least squares regression to investigate the effect of circular economy information on corporate economic sustainability in China.…”

“…Like the ESG scores, Morningstar's rating uses a 0-100 scale, where lower scores are superior. ESG risk is divided by five risk levels: negligible (0-10), low (10)(11)(12)(13)(14)(15)(16)(17)(18)(19)(20), medium (20)(21)(22)(23)(24)(25)(26)(27)(28)(29)(30), high (30)(31)(32)(33)(34)(35)(36)(37)(38)(39)(40), and severe (40-100) [19].…”

“…On the other side, the value destruction hypothesis implies that ESG disclosure activity is costly and detrimental for shareholders [21,22]. In addition, many studies have shown that net profit margin, asset turnover, dividend payment, financial leverage, non-interest income [12][13][14], intangible assets [25,26], working capital policy [27,28], environmental management [29] and other operating and financial performance indicators are related to SGR. Although the relationship between operating, financial performance and SGR has been extensively studied, the fact SGR can be influenced by non-financial components, such as ESG risk factors, cannot be ignored.…”

Sustainable Growth of Nonfinancial Firms: An Empirical Examination of Emerging Economies

“…Emerging economies can be described as economies that grow at a greater and higher pace as compared to other economies (Vasiliou & Karkazis, 2002;J. Xu & Wang, 2018;Xu et al, 2020). The process of testing at the micro-level becomes supportive for finance professionals as they can modify their policies and decisions according to their surroundings and can achieve their sustainable growth goal.…”

Towards Green Economics and Society: Exploring the Efficiency of New Energy Generation

“…Given a background of rapid mergers and reorganization, conventional energy enterprises are eager to transition to new energy industries but fail to combine this transition with their own operating experience [9]. Other business entities, such as venture capital and private capital, are also eager to invest in new energy sectors [10][11][12]. e phenomenon of low-level mergers and blind investment has created serious overcapacity and reduced production efficiency in new energy industries.…”