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Does Carbon Disclosure Matter? Corporate Finance and Bank Lending Evidence from Taiwan

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  • Yi-Ting Hsieh
  • Hsin-Hao Fu

Abstract

This study examines the relationship between carbon emission disclosure, corporate financial performance, and bank loan terms using panel data from publicly listed firms in Taiwan from 2011 to 2020. Firm characteristics such as size, reputation, book-to-market ratio, and industry pollution level significantly influence the likelihood of disclosure. The findings reveal a positive association between carbon reporting and financial performance, suggesting that greater transparency may enhance investor confidence and future profitability. Furthermore, disclosing firms benefit from more favorable loan conditions, including lower interest spreads, larger loan amounts, longer maturities, and a reduced need for collateral. These results highlight the financial value of environmental transparency. Â JEL classification numbers: G30, G32.

Suggested Citation

  • Yi-Ting Hsieh & Hsin-Hao Fu, 2025. "Does Carbon Disclosure Matter? Corporate Finance and Bank Lending Evidence from Taiwan," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 15(4), pages 1-2.
    • Handle: RePEc:spt:apfiba:v:15:y:2025:i:4:f:15_4_2
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    References listed on IDEAS

    as
    1. Fatemi, Ali & Glaum, Martin & Kaiser, Stefanie, 2018. "ESG performance and firm value: The moderating role of disclosure," Global Finance Journal, Elsevier, vol. 38(C), pages 45-64.
    2. America Alvarez, 2015. "Corporate response to human resource disclosure recommendations," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 11(2), pages 306-323, June.
    3. Sinkin, Charlene & Wright, Charlotte J. & Burnett, Royce D., 2008. "Eco-efficiency and firm value," Journal of Accounting and Public Policy, Elsevier, vol. 27(2), pages 167-176.
    4. America Alvarez, 2015. "Corporate response to human resource disclosure recommendations," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 11(2), pages 306-323, June.
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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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