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A Decision Support System to Estimate Green Sustainability from Environmental Protection and Debt Financing Indicators

Author

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  • Zhengyu Ren

    (School of Business, Macau University of Science and Technology, Taipa 999078, Macau)

  • Hsing Hung Chen

    (School of Business, Macau University of Science and Technology, Taipa 999078, Macau)

  • Kunseng Lao

    (School of Business, Macau University of Science and Technology, Taipa 999078, Macau)

  • Hongyi Zhang

    (School of Business, Macau University of Science and Technology, Taipa 999078, Macau)

Abstract

In the social context of advocating a low-carbon economy, achieving sustainable growth in line with current social development requirements is an issue that agribusiness must face. In order to explore the mechanisms influencing the sustainable growth of Chinese agriculture and to optimize the quality of agribusiness decisions, this paper examines the relationship between environmental management, debt financing indicators, and financial sustainable growth of the company in Chinese agriculture. Specifically, a decision support system based on the least square dummy variable (LSDV) model, mediating effects model and threshold effects model was constructed by using annual financial reports and questionnaire data of the listed agricultural enterprises. After empirical analysis, the following results were obtained: first, both environmental management and debt financing management help Chinese agricultural firms achieve financially sustainable growth. Second, debt financing can transmit the effect of environmental management on financially sustainable growth. Third, there are significant differences in the effects of debt financing on financially sustainable growth under different environmental management conditions. Finally, in order to promote the development of Chinese agriculture, this paper suggests that agricultural enterprises should actively implement environmental management and that relevant Chinese authorities should lower the financing threshold of the agricultural industry, while ensuring risk regulation.

Suggested Citation

  • Zhengyu Ren & Hsing Hung Chen & Kunseng Lao & Hongyi Zhang, 2022. "A Decision Support System to Estimate Green Sustainability from Environmental Protection and Debt Financing Indicators," Agriculture, MDPI, vol. 12(8), pages 1-13, August.
    • Handle: RePEc:gam:jagris:v:12:y:2022:i:8:p:1249-:d:891173
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