خطر کربن، هزینه تامین مالی بدهی و اثر تعدیل کننده توجه رسانه: شرکت های عملیاتی چینی در زمینه صنعت کربن بالا Carbon risk, cost of debt financing and the moderation effect of media attention: Evidence from Chinese companies operating in high‐carbon industries

 | INTRODUCTION In recent years, public concern over climate change has grown considerably, driven largely by the increasing emission levels of greenhouse gases, and the occurrence of unusual and destructive weather patterns (Thompson, 1998). Global climate change can potentially damage ecological systems and also cause unprecedented negative effects on the global economy and human society (Bebbington & Larrinaga‐González, 2008; Labatt & White, 2007). These concerns have prompted governments of many countries to implement regulations and policies for reducing and controlling industrial carbon emissions. Under the background of economic growth shift and structural adjustment, China, the world’s largest carbon emitter, is facing severe climate and environmental problems. At the Copenhagen Climate Conference in 2009, the Chinese Government promised that its carbon footprint in 2020 will be 40–45% less than that in 2005. At the Paris Climate Conference in 2015, the Chinese Government stated that CO2 emissions are to reach a peak in 2030. To realize these promises, the Chinese Government has made a series of policies to reduce carbon emissions. In 2011 the Chinese Government launched the carbon trading pilot scheme and in 2017 it introduced a unified carbon emission trading market. China’s carbon regulation is moving from a command‐and‐control one to a market‐based one. The market‐based carbon regulation will gradually become a “new normal” for the control of carbon emissions. China has become the world’s largest potential carbon market. The Chinese Government’s “13th Five‐Year” plan points out that it is essential to improve the carbon emissions accounting, assessment and accountability system and carbon emission standard system. Firms are not only the main source of carbon emissions, but also the most important participants in the carbon market. Chinese firms are facing increasing carbon risk under the growing intensity of carbon regulation. With the development of environmental regulations and policies, banks and other financial institutions have recently strengthened efforts to incorporate the risks of climate change into their credit decisions (Busch & Hoffmann, 2007; Coulson & Monks, 1999; Thompson, 1998; Thompson & Cowton, 2004). China is not an exception. On July 12, 2007, the Ministry of Environmental Protection, the China Banking Regulatory Commission and the People’s Bank of China issued advice on the implementation of environmental policies and regulations to prevent credit risk. They proposed a green credit mechanism to guide the development of low‐carbon green businesses. Therefore, carbon risk under stricter carbon constraints becomes more and more important in the capital market. An increasing number of firms encounter carbon risk‐related challenges in debt financing. The relationship between carbon risk and the cost of debt financing in China needs to be determined. In addition, media attention on carbon emissions has intensified globally and plays a crucial role in influencing firm behavior toward reducing carbon emissions (Schmidt, Ivanova, & Schäfer, 2013). In the Chinese context, carbon disclosure of China’s listed companies is in its infancy. Many characteristics must be considered in this regard, for example, scattered structure, qualitative information and industry differences. Providing accurate information to creditors entails difficulties. Media attention can effectively help creditors assess the carbon risk of firms. Through carbon‐related news, media as an important force in corporate governance influence the relationship between the cost of debt financing and carbon risk, and this moderating effect needs to be determined.