ADOPTION OF PRODUCT MARKET COMPETITION ON THE RELATIONSHIP BETWEEN ENVIRONMENTAL ACCOUNTING INFORMATION DISCLOSURE AND FINANCING CONSTRAINTS

In the context of growing global environmental concerns, investors and financial institutions are emphasizing environmental responsibility and sustainability. Financing constraints represent barriers that companies may encounter when seeking funding, which can have a significant impact on their investment decisions and expansion plans. Through enhanced environmental accounting information disclosure (EAID), companies can communicate their financial constraints to the outside world while still showing their commitment to being environmentally responsible. This approach not only enhances their corporate image, but may also help alleviate financing constraints and promote their sustainable development. Product market competition, as an external governance discipline mechanism, has the potential to drive innovation and productivity within companies. However, there is a complex relationship between product market competition and financing constraints. The enhancement of product market competitiveness can enhance investor confidence, reduce investors' requirements for risk premium, and thus reduce external financing costs. This study examined the influence of EAID on financing constraints through the lens of information asymmetry theory and resource dependence theory, while also investigating the heterogeneity of product market competition in the relationship between EAID and financing constraints, considering the nature of property rights. It was found that EAID can significantly alleviate financing constraints, that product market competition is negatively related to financing constraints, and that product market competition weakens the mitigating effect of EAID on financing constraints. These findings provide valuable insights for policymakers, investors, and managers seeking to balance environmental responsibility while fostering financial development under competitive market pressures.