The Impact of Carbon Information Disclosure Quality on Corporate Financing Costs: Evidence from Listed Companies in the Asia-Pacific Region

Xinting Wu

doi:10.54254/2754-1169/2025.BJ28942

Advances in Economics, Management and Political SciencesOpen access

The Impact of Carbon Information Disclosure Quality on Corporate Financing Costs: Evidence from Listed Companies in the Asia-Pacific Region

Research Article

Open Access

The Impact of Carbon Information Disclosure Quality on Corporate Financing Costs: Evidence from Listed Companies in the Asia-Pacific Region

Xinting Wu ^1*

¹ Universiti Sains Malaysia

^*Corresponding author: xintingshun@student.usm.my

Published on 5 November 2025

AEMPS Vol.241

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-541-7

ISBN (Online): 978-1-80590-542-4

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Abstract

With the growing importance of climate change and environmental sustainability in the world, businesses are now understood to play a significant part in reducing emissions and becoming more sustainable. Carbon information disclosure is a major way for companies to disclose their carbon emissions and climate risk, which ultimately affects the cost of capital. This paper examine the association between carbon information disclosure quality and corporate financing costs, based on a sample of listed firms in the Asia-Pacific region. Using fixed-effects models, the study investigates how a carbon disclosure affects financial costs and also examines the nonlinear form of this relationship with regulating factors. The findings show that a high quality level of carbon disclosure generally reduces financing costs but non-linearly, following an inverted U-shape. In particular, over-disclosure may be associated with greater financing costs. Second, the study shows that institutional context is an important moderating factor; stricter environmental disclosure requirements lead to a greater negative relationship between carbon disclosure quality and financing costs.

Keywords:

Carbon information disclosure, financing costs, Asia-Pacific, non-linear relationship, regulatory environment.

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References

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