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Research on biodiversity risk and corporate short-term debt for long-term use under disclosure regulation

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  • Yang, Guang
  • Li, Yu

Abstract

This paper uses A-share enterprises from 2000 to 2023 as the sample to explore how biodiversity risk affects corporate short-term debt for long-term use. Results show that biodiversity risk exacerbates corporate short-term debt for long-term use. Mechanism analysis reveals that biodiversity risk does so by weakening corporate risk-taking capacity and asset turnover. Heterogeneity tests find that the impact of biodiversity risk is more significant for enterprises that have heavier tax burdens, face more intense industry competitions, and receive less attentionfrom institutional investors. Economic consequence tests indicate that corporate short-term debt for long-term use may affect corporate tax avoidance, high-quality development, and default risk. This paper offers empirical insights for coordinating enterprise biodiversity and investment and financing strategies.

Suggested Citation

  • Yang, Guang & Li, Yu, 2025. "Research on biodiversity risk and corporate short-term debt for long-term use under disclosure regulation," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003137
    DOI: 10.1016/j.frl.2025.107049
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    References listed on IDEAS

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    Cited by:

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    5. Yang, Rui & Li, Rongrong & Ge, Xinyu, 2025. "Digital finance development, financial mismatches, and corporate shadow banking activities," China Economic Review, Elsevier, vol. 93(C).
    6. Jv, Yue-Qi & Shao, Li-Na & Zhang, Zheng-Yu, 2025. "Bank competition and firms’ maturity mismatch puzzle: Evidence from a right-tail average effect model," Finance Research Letters, Elsevier, vol. 86(PF).
    7. Li, Jun & Jin, Yihang & Zhou, Peng, 2025. "Do banks price firms' biodiversity risk? Evidence from the Kunming declaration," International Review of Financial Analysis, Elsevier, vol. 106(C).
    8. Pi, Tianlei & Jiao, Linke & Zhou, Yuhan & Shi, Jin, 2026. "Biodiversity risk and corporate greenwashing: Evidence from China," Research in International Business and Finance, Elsevier, vol. 83(C).
    9. Li, Peigong & Shahzad, Umeair, 2026. "Corporate biodiversity risk exposure in China: A system-based perspective from natural capital theory using machine and deep learning algorithms," Ecological Economics, Elsevier, vol. 242(C).

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