Year: 2025
Type: article
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. JEL classification numbers: G30, G32. Keywords: Carbon disclosure, Corporate performance, Bank loan contract terms, ESG.
DOI: 10.47260/jafb/1542
Authors: Yi-Ting Hsieh, Hsin-Hao Fu
Institutions: Feng Chia University, Tunghai University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
SDG: Climate action
Open Access status: gold
OpenAlex ID: W4413923049