Disclosure of Environmental, Social and Governance Performance on the Supply and Demand of Business Credit

Subject Areas : Financial Economics

مصطفی ایزدپور ¹ , Mohammad Mohammadi Moghadam ² , زهرا حیدری سورشجانی ³

1 - Assistant Professor, Department of Accounting, Faculty of Economics and Management, University of Qom, Qom, Iran
2 - M.A of Accounting, Faculty of Economics and Management, University of Qom, Qom,
3 - PhD student, Department of Accounting, Faculty of Administrative Sciences and Economics, Isfahan University, Isfahan, Iran

Received: 2024-05-25 Accepted : 2024-08-19

Keywords: Disclosure of Environmental, Social and Governance Performance, Business Credit Supply, Business Credit Demand.,

Abstract :

As an important method of financing, trade credit has an important place in the operation and strategy of the company which can play a significant role in strengthening the supply chain of the company's relationship with customers. The basis of building business credibility is mutual trust, transparency of sustainable information, good social image and reputation are all useful for building business credibility. In this way, companies with environmental, social and governance performance attract companies with similar business philosophies and create a mutual trust mechanism that can increase the supply and demand of business credit for them. However, in the absence of empirical studies in Iran, the present study examines the disclosure of environmental, social and governance performance on the supply and demand of commercial credit. In this regard, a sample consisting of 130 companies admitted to the Tehran Stock Exchange was selected and tested during the period of 2015-2022. The results showed that the disclosure of the company's environmental, social and governance performance has a positive relationship with the demand for commercial credit. However, the disclosure of the company's environmental, social and governance performance is not positively related to the supply of commercial credit.

References:

افلاطونی، عباس. (1397). اقتصادسنجی در پژوهش­های مالی و حسابداری با نرم­افزار استاتا، چاپ اول، انتشارات ترمه، تهران.
افلاطونی، عباس، و نوروزی، محمد. (1399). عوامل موثر بر عرضه و تقاضای اعتبار تجاری: رویکردهای ایستا و پویا، دانش حسابداری، (1) 11، 59-35.
خلیفه سلطانی، سید احمد، و علیشاهی بجستانی، مهدیه. (1401). رابطه بین افشای پایداری شرکت و ریسک. مطالعات حسابداری و حسابرسی، 11(42)، 5-20.
شاه‌بداغی، راحله، مرادی، مجید، و گرجی زاده، داوود. (1401). تاثیر فساد مالی بر پایداری زیست محیطی درشرکت های پذیرفته شده در بورس اوراق بهادار تهران، اقتصاد مالی، 17(62)، 34-15.
ضیا، فرناز، وکیلی فرد، حمیدرضا، و صراف، فاطمه. (1399). تاثیر گزارشگری پایداری بر کاهش عدم تقارن اطلاعاتی شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران. حسابداری مدیریت، 13(46)، 121-135.
عرب، روح اله، آخوندرادکانی، منصوره، غلامرضاپور، محمد. (1400). تمرکز مشتری و اعتبار تجاری پرداختی به مشتریان: نقش تعدیلی ریسک عملیاتی و اهرم مالی. پژوهشنامه بازرگانی، 25(100)، 79-104.
فخاری، حسین، ملکیان، اسفندیار، و جفایی رهنی، منیر. (1396). تبیین و رتبه بندی مولفه‌ها وشاخص‌های گزارشگری زیست محیطی، اجتماعی و راهبری شرکتی به روش تحلیل سلسله مراتبی در شرکت‌های پذیرفته شده در بورس اوراق بهادار. حسابداری ارزشی و رفتاری، 21(3 )، 153-187.
گرجی، محمدرضا، قدرتی، حسن، عرب زاده، میثم، و پناهیان، حسین. (1402). تاثیر کیفیت سود بر اعتبار تجاری شرکت با تاکید بر نقش تعدیل کنندگی ثبات رویه اطلاعات حسابداری: رویکرد متن کاوی. دانش حسابداری و حسابرسی مدیریت، 12(45)، 391-406.
محمودی، رضا، طالب‌نیا، قدرت الله، وکیلی فرد، حمیدرضا، و احمدی، فائق. (1402). ارائه ی الگوی گزارشگری پایداری با رویکرد تئوری داده بنیاد در شرکت های پذیرفته شده بورس اوراق بهادار تهران، اقتصاد مالی، 17(64)، 207-222.
Albuquerque, R., Koskinen, Y., & Zhang, C. (2019). Corporate social responsibility and firm risk: Theory and empirical evidence. Management Science, 65(10), 4451-4469.‏
Deng, X., & Cheng, X. (2019). Can ESG indices improve the enterprises’ stock market performance?—An empirical study from China. Sustainability, 11(17), 4765.‏
Emery, G. W. (1987). An optimal financial response to variable demand. The Journal of Financial and Quantitative Analysis, 22(2), 209–225.
Fabbri, D., & Klapper, L. F. (2016). Bargaining power and trade credit. Journal of corporate finance, 41, 66-80.‏
Fabbri, D., & Menichini, A. M. C. (2010). Trade credit, collateral liquidation, and borrowing constraints. Journal of Financial Economics, 96(3), 413-432.‏
Garcia-Castro, R., Ari˜no, M., Canela, M., (2010). Does social performance really lead to financial performance? Accounting for endogeneity. J. Bus. Ethics 92 (1), 107–126.
Ghoul, S. E., Guedhami, O., & Kim, Y. (2017). Country-level institutions, firm value, and the role of corporate social responsibility initiatives. Journal of International Business Studies, 48, 360-385.‏
GSIA (Global Sustainable Investment Alliance), 2018. 2018 global sustainable investment review. Available at: http://www.gsi-alliance.org/wp-content/uploads/ 2019/03/GSIR_Review2018.3.28.pdf [last access: June 2021].
He, F., Du, H., & Yu, B. (2022). Corporate ESG performance and manager misconduct: Evidence from China. International Review of Financial Analysis, 82, 102201.‏
Heese, J., Pérez-Cavazos, G., & Peter, C. D. (2022). When the local newspaper leaves town: The effects of local newspaper closures on corporate misconduct. Journal of Financial Economics, 145(2), 445-463.‏
Klapper, L., Laeven, L., & Rajan, R. (2012). Trade credit contracts. Review of Financial Studies, 25(3), 838–867. Klasa, S.,
Levine, R., Lin, C., & Xie, W. (2018). Corporate resilience to banking crises: The roles of trust and trade credit. Journal of Financial and Quantitative Analysis, 53(4), 1441–1477.
Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. the Journal of Finance, 72(4), 1785-1824.‏
Luo, C., Wei, D., & He, F. (2023). Corporate ESG performance and trade credit financing–Evidence from China. International Review of Economics & Finance, 85, 337-351.‏
McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Corporate social responsibility: Strategic implications. Journal of management studies, 43(1), 1-18.‏
Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483-515.‏
Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. The Review of financial studies, 22(1), 435-480.‏
Shahzad, U., Zhao, L., Liu, J., & Luo, F. (2022). Corporate value and trade-credit policies: evidence from China. Journal of Applied Economics, 25(1), 412-432.‏
Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. The American economic review, 71(3), 393-410.‏
Tamimi, N., & Sebastianelli, R. (2017). Transparency among S&P 500 companies: An analysis of ESG disclosure scores. Management Decision, 55(8), 1660-1680.‏
Tian, H., & Tian, G. (2022). Corporate sustainability and trade credit financing: Evidence from environmental, social, and governance ratings. Corporate Social Responsibility and Environmental Management, 29(5), 1896-1908.‏
Wu, S., Gong, G., Huang, X., & Tian, H. (2021). The interaction between suppliers and fraudulent customer firms: Evidence from trade credit financing of Chinese listed firms. Journal of Business Ethics, 1-20.‏
Yang, S. A., & Birge, J. R. (2018). Trade credit, risk sharing, and inventory financing portfolios. Management Science, 64(8), 3667–3689.
Yuan, X., Li, Z., Xu, J., & Shang, L. (2022). ESG disclosure and corporate financial irregularities–Evidence from Chinese listed firms. Journal of Cleaner Production, 332, 129992.‏
Zhang, D., & Lucey, B. M. (2022). Sustainable behaviors and firm performance: The role of financial constraints’ alleviation. Economic Analysis and Policy, 74, 220-233.‏
Zhang, Y., Lara, J. M. G., & Tribó, J. A. (2020). Unpacking the black box of trade credit to socially responsible customers. Journal of Banking & Finance, 119, 105908.‏
Zheng, H., & Aishan, W. (2023). ESG ratings and trade credit: inverted U-shaped moderating role of information transparency and executives with overseas backgrounds. Environmental Science and Pollution Research, 1-15.‏