Value effect of AI innovation zones: Green premium and cost reduction pathways in environmental disclosure

Corporate sustainability reporting currently fails to provide the information needed for companies, their investors and society to address mounting environmental risks because predominant reporting requirements focus heavily on firm-level risks, neglecting cumulative impacts on climate and nature. Recently, sustainability reporting has also been critiqued for the administrative burden it places on companies. Corporate reporting may seem far removed from sustainability science but is, in fact, a critical lever in directing corporate practice. A golden opportunity therefore exists for sustainability science to simultaneously help reduce, refine and improve sustainability reporting by identifying the most prioritized mandatory environmental disclosures and support the development of an open-access disclosure repository. This would radically improve the ability of investors, regulators, and public agencies to appraise environmental pressures, improve corporate accountability, and mitigate growing systemic risks. Treating environmental data with the rigor granted to financial data is fundamental to align capital with sustainability objectives.

Purpose Based on the current problems of serious homogenization of social responsibility reports and poor quality of information disclosure, this study aims to explore whether specificity disclosure of social responsibility reports can effectively reduce the cost of debt financing. Design/methodology/approach This study examines the impact of specificity disclosure in social responsibility reports on the cost of corporate debt financing, using machine learning text analytics on a sample of social responsibility reports of China’s A-share listed companies from 2009 to 2021. Findings This study finds that the specificity of disclosure in corporate social responsibility reports can significantly reduce the cost of corporate debt financing, and the results remain robust across various robustness tests. The effect is more pronounced under conditions of higher corporate risk, such as excessive leverage or intense product market competition. Further analysis suggests that the effect is stronger when industry disclosure is homogeneous, firms’ disclosure environments are better and information dissemination is more intense. Originality/value This study provides empirical evidence for optimizing corporate disclosure strategies, improving regulatory frameworks and creditor risk assessment.

This study examines the relationship between environmental, social, and governance (ESG) disclosures and firm profitability in Vietnam, a transitional emerging economy characterized by significant state ownership and evolving corporate governance structures. Drawing on stakeholder, agency, and resource dependence theories, and building on prior ESG-performance research largely conducted in developed markets (Alareeni & Hamdan, 2020; Rahi et al., 2024), we investigate whether the financial effects of ESG disclosures are contingent on governance conditions. Using panel data from 147 Vietnamese listed firms over the period 2014–2023 and fixed-effects regressions with Driscoll-Kraay robust standard errors, we analyze the effects of environmental (E), social (S), and governance (G) disclosures on return on assets (ROA). The results indicate that social and governance disclosures are positively associated with profitability, whereas environmental disclosure shows no significant short-term effect. Moreover, state ownership weakens the positive impacts of environmental and governance disclosures, board gender diversity amplifies the effect of governance disclosure, and board independence unexpectedly reduces the performance gains from environmental and social disclosures. These findings contribute to the ESG literature by demonstrating that ESG value creation is highly context-dependent and shaped by ownership structure and board characteristics, offering new evidence from an underexplored emerging market setting.

Does climate risk influence firms' voluntary environmental information disclosures? Evidence from typhoon events in China.

The present study investigates the effect of green accounting and environmental disclosure on the financial performance of transportation and logistics companies listed on the Indonesian Stock Exchange (IDX) between 2020 and 2023. A quantitative approach was utilized to assess 18 companies that were selected through purposive sampling. A total of 72 data were obtained from annual and sustainability reports and analyzed using multiple linear regression. The findings indicate that green accounting as well as environmental disclosure have a positive and significant effect on financial performance. The study offers practical implications: sustainable practices, including green accounting and environmental disclosure, may enhance stakeholder trust and strengthen financial outcomes.

This study aims to analyze the impact of environmental, social, and governance (ESG) disclosure quality on banking risk. Data were collected from the 100 largest commercial banks in the Middle East and Africa over ten years and examined using econometric analysis to measure the influence of ESG disclosure quality on banking risks. The findings indicate that both social and environmental disclosures have high predictability, while governance disclosure shows lower predictability. A significant negative relationship exists between the ESG disclosure quality and risk. Governance disclosure, Tier 1 capital, has a strong influence, and capital adequacy has the least. Managerial and practical implications are based on bank compliance, coverage, and debt. Unlike previous studies, this study moves from ESG performance to its disclosure quality and combines the random forest method (machine learning) with dynamic panel analysis (econometrics), bringing innovation and contribution to knowledge (the stakeholder theory) and practice.

Prior studies warn that environmental, social, and governance (ESG) reporting can mask poor sustainability performance and artificially inflate company reputations, but the extant literature offers few solutions to this problem that do not involve regulatory reform (Cooper & Owen, 2007; Hess & Dunfee, 2007; Patekar & Mahajan, 2025). This study contributes to this research gap by exploring ways that managers can improve the credibility of their ESG reporting in a voluntary disclosure environment. Our mixed methods research design leverages data on disclosure, goal setting, goal performance, and assurance collected through a content analysis of the sustainability reports for a sample of publicly traded U.S. companies following the Global Reporting Initiative (GRI) reporting framework from 2013–2019. Our quantitative analyses suggest that ESG ratings (Sustainalytics) are positively associated with the number of sustainability topics disclosed (disclosure breadth), a decrease in economic disclosures, and an increase in environmental disclosures (disclosure depth), setting environmental goals, and successfully reaching sustainability targets. However, we see no association between ESG ratings and goal failure rates or the use of higher-quality auditors. These findings may be especially relevant for managers making decisions about sustainability strategy, disclosure, and assurance, and for ESG investors seeking to identify credible firms for sustainability-focused investment.

ABSTRACT Using panel data from Chinese listed firms from 2012 to 2023, we find that environmental information disclosure (EID) is associated with lower firm value. This adverse effect is primarily attributable to the negative implications of information on pollution and environmental non-compliance, the potential risk of opportunistic greenwashing behaviour, and information asymmetry due to non-standardized and inconsistent disclosure practices in China. The results remain robust to alternative specifications and endogeneity tests. In addition, the government’s environmental regulations and financial support significantly moderate the observed adverse effect. Furthermore, we find that active stakeholder engagement and distinct corporate characteristics (i.e. real green commitments) help to align EID with firm value.

Purpose This study examines the effect of monitoring mechanisms, specifically board attributes, audit committee characteristics and ownership types, on environmental disclosure environmental disclosure levels (ENDL) among listed firms in Nigeria, a context where such integrated analysis is lacking. Design/methodology/approach Using panel data from 95 firms (2012–2022), we apply the Global Reporting Index to assess ENDL. The analysis utilizes panel data regression techniques, including both fixed-effects and random-effects specifications, along with the Generalized Method of Moments to control for endogeneity in the estimation. Findings Firms with independent board, board environmental committees, environmental expertise, independent audit committees, audit committee financial expertise, audit committee gender, government and foreign ownership exhibit higher ENDL. However, chief executive officer’s gender and the audit committee meeting frequency negatively impact ENDL. Research limitations/implications The generalizability of this study's conclusions is potentially constrained by its country-specific context, as the data are drawn solely from the Nigerian market. To enhance the external validity of the findings, subsequent studies should replicate this analysis in other national settings. This study also paves the way for future inquiry by suggesting that the theoretical model could be expanded through the inclusion of moderating or mediating variables, which would provide a more nuanced explanation of the mechanisms driving environmental disclosure. Practical implications Policymakers should strengthen governance mandates to enhance environmental transparency. For theory, it extends agency and stakeholder theory by demonstrating that general governance mechanisms are insufficient drivers of non-financial disclosure in emerging economies. Social implications This study has the potential to positively impact social outcomes by promoting environmental sustainability, corporate accountability and informed decision-making in Nigeria. Originality/value This study uniquely integrates board, audit and ownership monitoring mechanisms into a single framework, offering insights for Nigerian regulators and firms.

ABSTRACT As a vital component of China’s ecological civilization institutional framework, the environmental credit system employs diverse policy instruments. Drawing upon provincial-level panel data from 2003 to 2022 and employing spatial econometric models, this study empirically examines the impact of green credit and environmental information disclosure on agricultural green total factor productivity, alongside their spatial effects. Findings reveal that environmental disclosure exerts a significant positive effect on agricultural green TFP, whereas standalone green credit policies yield negligible results. The combination of both policies demonstrates a synergistic enhancement effect, substantially boosting agricultural green TFP. The study further reveals pronounced regional heterogeneity: in coastal regions, both policy types and their combination exert positive effects, whereas in non-coastal areas and major grain-producing regions, green credit and its combination with disclosure produce inhibitory effects. Mechanism analysis indicates that agricultural machinery investment and agricultural electricity consumption constitute the primary transmission pathways through which the combination of green credit and environmental disclosure impacts agricultural green total factor productivity.

This study aims to examine the influence of Environmental, Social, and Governance (ESG) disclosure on firm value in listed automotive manufacturing companies in Indonesia using a Systematic Literature Review (SLR) approach. The SLR approach is used to collect, assess, and integrate findings from relevant previous studies, both from national and international journals. The analysis results indicate that environmental disclosure contributes to improving corporate image and investor confidence through the implementation of sustainability practices. Social aspects play a role in strengthening relationships with stakeholders and supporting the sustainability of company operations. On the other hand, effective corporate governance has been shown to reduce agency risk and increase transparency, thus positively impacting firm value. However, several studies show inconsistent findings, influenced by the level of ESG disclosure and the characteristics of each company. In general, this study concludes that the implementation and continuous disclosure of ESG can be a relevant strategy in increasing firm value in the Indonesian automotive sector.

Abstract In emerging economies, it has been observed that corporate operations have always been a major force behind environmental degradation and associated human rights crises. This study demonstrates a quantitative environmental, social, and governance framework using data from India’s Business Responsibility and Sustainability Reporting to evaluate the environmental performance of corporations using novel intensity measures. Key findings show that cement industry exhibits some of the highest purchasing power parity (PPP)-adjusted emissions at nearly 0.89 tCO₂e/₹ crore (tonnes of CO₂ equivalent per rupee crore or per 10 million Indian Rupees) or nearly 7.5 tCO₂e/ million US$ revenue. Mining operations in water-stressed regions show a 19%–37% excess over basin recharge capacity. Additionally, 88% of the companies do not report Scope 3 emissions, leaving behind critical lacunae in value chain accountability. Data validation shows the existence of a 72% accuracy in the emission reporting and 68% accuracy in water metrics. The equations in the framework that factor in regional PPP factors and aquifer stress percentages give the model a replicable methodology for quantifying corporate environmental impacts in data-scarce regions with potential for adaptation across developing nations with similar industrialisation-environment trade-offs.

This study highlights the critical role of green macro-prudential policy (GMPP) in green material monitor (GMM). Using data from 64 countries from 2000 to 2022, the analysis uses the panel vector autoregressive method and the dynamic panel threshold model. The results suggest that GMPP received positive shocks from GMM in the first period, and its responses turned negative from the second period onwards. In contrast, the impact of GMPP on GMM was negative and became more significant in the first four periods. Its negative impacts decreased to zero by the end of the period. Furthermore, the threshold quantity of green macro-policy is 87.5%. Below the threshold, GMPP hurts total resource usage (green accounting), while above the threshold, this effect becomes less significant. Therefore, central banks should link preferential credit and refinancing rates to verified environmental disclosures, thereby motivating firms to adopt transparent GMM. Such a GMPP aligns financial incentives with sustainability reporting and strengthens accountability in the financial system.

Taiwan engages with global sustainability frameworks through selective participation, outside UN-based institutions. This article explains why a politically limited yet economically central actor invests in Environmental, Social, and Governance (ESG) standards and the Sustainable Development Goals (SDGs), and how functional participation creates opportunities for action without treaty-based participation. Using a dual-level approach, it combines a qualitative, theory-informed analysis of state engagement with a systematic content analysis of ESG reporting by ten Taiwanese firms. The findings reveal a consistent asymmetry in issue areas. At the state level, Taiwan prioritises climate-related visibility and technical alignment, including emissions targets aligned with the Paris Agreement, a 2050 net-zero commitment, and indirect involvement with UNFCCC processes through side events and public–private platforms. Conversely, labour governance is approached more cautiously via low-profile, non-binding channels rather than rights-focused supervisory frameworks. Corporate communication reflects this pattern: environmental disclosure is extensive and standardised, while social and governance reporting is more selective and tailored to external exposure and regulatory pressure. The article demonstrates how selective engagement functions as a strategy for managing regime complexity within fragmented governance arrangements, producing internationally recognisable alignment through standards, disclosure, and risk management.

ABSTRACT Despite the growing attention on sustainability and transparency, little is known about how green accounting disclosure practices shape stakeholder perceptions in developing markets. Existing research has mainly centered on the financial outcomes of environmental disclosure, leaving a gap in understanding its socio‐relational effects, especially stakeholders' trust. This study investigates the impact of perceived green accounting practices on stakeholders' confidence, considering the mediating effect of corporate reputation and the moderating effect of third‐party environmental disclosure assurance in the geographic context of manufacturing and commercial banks in Ghana, drawing on stakeholder and legitimacy theories. This study utilized primary data collected from 589 participants from the various external stakeholders in Ghana using survey instruments. SmartPLS 4.0 software was used to conduct the study analysis by employing the Partial Least Squares Structural Equation Model (PLS‐SEM) approach. The study results revealed that perceived green accounting practices positively and significantly influence corporate reputation and stakeholders' confidence. Additionally, the study discovered that corporate reputation has a significantly positive mediating effect on the relationship between perceived green accounting practices and stakeholders' trust, while third‐party environmental disclosure assurance favorably and substantially moderates the relationship between perceived green accounting disclosure practices and stakeholders' trust. This study provides valuable insights to policymakers, business managers, and owners on how green accounting practices boost corporate reputation and stakeholders' confidence in developing economies.

This study explored the relationship between environmental disclosures quality and the financial performance of fast-food chain businesses in General Santos City. The present research study used a quantitative method, employing a descriptive correlational design to investigate the nature of the mentioned variables as well as the relationship between them. This study is anchored on the Stakeholder Theory of Freeman (1984) and Legitimacy Theory by Deegan (2002) and Suchman (1995). After gathering the mean rating of the 111 fast-food chain businesses, results showed a high level of hard environmental disclosure, soft environmental disclosure, and financial performance. Using the Pearson Product Correlation Coefficient, the researchers determined that there is a significant relationship between the environmental disclosure quality and the financial performance of Fast Food Chain Businesses in General Santos City. Ultimately, it is recommended that future research should pursue other types of enterprises or extend to different geographical areas.

Purpose This paper aims to assess the impact of the enforcement of Article 173 of France’s Law n.992/2015 (on Energy Transition for Green Growth) and of its environmental disclosure requirements on bank lending behaviour. Design/methodology/approach The authors conduct loan-level triple-difference estimates by using confidential loan-level data from the credit registry of the European Central Bank (AnaCredit) and detailed company-level greenhouse gas emissions. Findings The authors show that while Article 173 has pushed French banks to reduce overall brown lending, these banks have increased lending to domestic polluting firms to compensate for foreign lenders pulling out of the French market. Originality/value The study’s results call for higher coordination among European regulators on the implementation of climate regulations.

ABSTRACT This study investigates whether green intellectual capital (GIC) enhances the impact of green innovation (GI) on corporate environmental disclosure (CED) within the unique institutional and developmental context of African frontier markets. It aims to explore the interaction between GI and GIC, particularly in resource‐constrained settings, and proposes that GIC acts as a performance amplifier, strengthening the efficacy of GI initiatives in achieving environmental outcomes. Using a balanced panel of 4312 firm‐year observations across nine African frontier countries, the study applies Fixed Effects Two‐Stage Least Squares (FE‐2SLS) to address endogeneity. The data was collected from annual reports and sustainability disclosures of listed companies. The findings reveal that both GI and GIC independently contribute to CED, but their interaction yields a significantly greater effect. This synergy suggests that green capabilities embedded in human resources, organizational routines, and stakeholder relations are critical enablers of sustainable innovation. The study confirms that firms with higher levels of GIC derive more environmental value from their innovative efforts.

Environmental information disclosure (EID) serves as a key indicator for assessing corporate green progress and is a central pathway for advancing the synergy between economic and environmental systems. Clarifying the mechanism through which climate risk perception (CRP) influences corporate EID holds significant practical relevance for supporting firms in responding to climate change. Using a sample of China’s A-share listed companies from 2011 to 2023, this study employs a two-way fixed effects model to examine the impact of climate risk perception on corporate environmental information disclosure. Research findings suggest that climate risk perception is positively correlated with environmental information disclosure, a relationship linked through two key channels: the exertion of disclosure pressure on firms and the incentivization of green innovation. Further analysis reveals a positive moderating role of institutional ownership. Heterogeneity analysis shows that the effect of CRP varies considerably across firm characteristics: its promoting effect is weaker in foreign-invested and traditional firms but markedly in digital ones. The measurement and variable construction of CRP in this study can serve as a reference for variable development in related fields. Moreover, the main findings can assist enterprises in making better decisions when facing climate risks and provide a new perspective for deepening research on corporate green performance.