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The Impact of Haze on the Availability of Company Debt Financing: Evidence for Sustainability of Chinese Listed Companies

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  • Bin Li

    (School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China)

  • Peixiang Guo

    (School of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, China)

  • Yating Zeng

    (School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China)

Abstract

Based on the data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2013 to 2017 and the air quality monitoring data released by China Environmental Monitoring Station, the paper examines the impact of haze on the availability of company debt financing by using fixed-effects model and quantile regression model. The empirical results show that: Firstly, haze has a positive impact on the demand of company debt financing, and the positive effect is marginal increment. Secondly, haze has a negative impact on the availability of company debt financing, and the negative impact is also marginal increment. Further study found that heavy polluting industry characteristics weaken the impact of haze on company debt financing availability. The paper analyzes the influence of air pollution on enterprise management from the perspective of company debt financing and explains the necessity for companies to implement an environmentally sustainable development strategy.

Suggested Citation

  • Bin Li & Peixiang Guo & Yating Zeng, 2019. "The Impact of Haze on the Availability of Company Debt Financing: Evidence for Sustainability of Chinese Listed Companies," Sustainability, MDPI, vol. 11(3), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:806-:d:203360
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    References listed on IDEAS

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    Cited by:

    1. Wang, Changming & Liao, Hongwei & Zhu, Lei & He, Leihua, 2024. "The haze reduction effect in china under the digital economy," Journal of Asian Economics, Elsevier, vol. 95(C).
    2. Bin Li & Shuai Shi & Yating Zeng, 2020. "The Impact of Haze Pollution on Firm-Level TFP in China: Test of a Mediation Model of Labor Productivity," Sustainability, MDPI, vol. 12(20), pages 1-21, October.
    3. Hongyu Li & Zhiqiang Lu & Qili Yin, 2023. "The Development of Fintech and SME Innovation: Empirical Evidence from China," Sustainability, MDPI, vol. 15(3), pages 1-14, January.
    4. Lara Al-Haddad & Shafiq Al Abed & RaEd Kamal QaQish & Zyad Marashdeh & Abd Al-Salam Ahmad Al-Hamad, 2023. "Does Volatility in Air Pollution Index Affect Firm Financing Pattern?," Advances in Decision Sciences, Asia University, Taiwan, vol. 27(4), pages 1-23, December.

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