Environmental Information Disclosure Research Articles

Responding to green finance with emission reduction and value-added: The role of enterprise environmental investment

Responding to China’s green finance policy with enterprise environmental investment (EEI) constitutes a crucial link in achieving environmental governance objectives, exerting crucial influence on the nation’s green transformation and high-quality development. Taking the pilot policy of China’s Green Finance Reform and Innovation Experimental Zone (GFRP) in 2017 as a quasi-natural experiment, this study systematically evaluates the effect of GFRP policy on the decisions of EEI and further explore whether the investments are used for passive end-of-pipe treatment (EOP) or positive source prevention (SP) by using firm-level data. The results indicate that GFRP policy can significantly promote EEI, and mainly reflected in SP, rather than EOP. Through potential mechanism analysis, it can be concluded that GFRP policy facilitates EEI by alleviating financial constraint, reducing agency cost, and enhancing environmental information disclosure. Heterogeneity analysis suggests that there exists asymmetry in policy effects, with greater impacts in high green finance development areas, low concentration industries and large-scale enterprises. Furthermore, micro-level performance consequences examination reveals that the enterprises’ decision to increase EEI under GFRP policy not only effectively realizes energy conservation and emission reduction but also contribute to facilitating enterprise value, to achieve green transformation. This study holds significant policy implications, providing empirical evidence to policymakers for the refinement and dissemination of green finance policy, and offering valuable insights for enterprise investment and management decisions.

The impact of environmental, social and governance disclosure on stock prices: Empirical research in Vietnam

The aims of this research is to evaluate the impact of Environmental, Social and Governance (ESG) information disclosure (using both financial and non-financial information) on stock prices of businesses in Vietnam; From there, propose recommendations to promote transparent practices and information disclosure about ESG of businesses related activities; Contribute to developing sustainable investment goals in businesses, and the financial market in general. Based on the (Ohlson, 1995) [40] valuation model, and developed by Barth and Clinch (2009) [41] the research was conducted empirically in 30 listed companies in Vietnam in the period 2019–2022. Research results based on the GLS method show that ESG positively impacts stock prices. Additionally, this paper conducted an in-depth analysis of each individual pillar and found that the environmental pillar was considered the most meaningful to market participants. However, the correlation between ESG and stock prices is weakened for environmentally sensitive businesses. This study also makes a valuable contribution to the current literature on non-financial information reporting by using manually collected data and investigating the effects of ESG reporting on market participants in the public system voluntary information disclosure system of an emerging market like Vietnam.

Do Chinese Residents’ Perceptions of Air Pollution Affect Their Pro-Environmental Behaviors: The Moderating Role of Environmental Knowledge

Air pollution has become an important environmental and public health problem in China; improving air quality has become one of the most important tasks of the Chinese central government in recent years. In all aspects of environmental governance, the public’s pro-environmental behavior is crucial to comprehensively improve air quality. This study used data provided by the 2021 China General Social Survey (CGSS) to explore the relationship between air pollution perception, environmental knowledge, and pro-environmental behavior. The results of the study indicated that: (1) Residents’ subjective perception of air pollution has a significant positive impact on residents’ pro-environmental behaviors. The more serious the air pollution in the surrounding area is, the more likely residents are to adopt more pro-environmental behaviors; (2) Environmental knowledge also has a positive impact on residents’ pro-environmental behaviors and individuals with higher environmental knowledge are more likely to adopt more pro-environment behaviors; and (3) Environmental knowledge plays a positive regulating role in the relationship between air pollution perception and pro-environmental behavior. Individuals with higher environmental knowledge are more willing to engage in more pro-environmental behaviors when they perceive air pollution. To promote the residents’ pro-environmental behaviors, we should further strengthen the education of environmental knowledge and strengthen the disclosure of environmental information. This study provides valuable insights for China to formulate environmental governance policies, enrich the research on pro-environmental behavior to a certain extent, and provide lessons for other developing countries and high-polluting countries to find environmental governance methods.

The Impact of Green Credit Policy on the Environmental Information Disclosure Level of "Two Highs and One Remaining" Enterprises

The Impact of Green Credit Policy on the Environmental Information Disclosure Level of "Two Highs and One Remaining" Enterprises

Unleashing the impact of environmental information disclosure on corporate green innovation: The role of audit quality and media attention

Green innovation is critical for enterprises to achieve sustainable development, although academics and entrepreneurs often associate it with financial performance. However, more research is needed on the boundary and mechanism of the effect of environmental information disclosure on corporate green innovation. Based on the data of A-share listed companies from the years 2008–2022 in China, this study discusses the impact of environmental information disclosure on green innovation. It analyzes the moderating effects of external audit quality and media attention. The results show that environmental information disclosure promotes green innovation. Further, audit quality and media attention have a positive moderating effect. In addition, this effect is more evident in non-state and heavily polluting industries. Finally, alleviating financial constraints is a critical mechanism for how environmental information disclosure affects green innovation.

The Impact of Environmental Information Disclosure in the “Carbon Trading Pilot” Project on the Financial Performance of Listed Enterprises in China

The Impact of Environmental Information Disclosure in the “Carbon Trading Pilot” Project on the Financial Performance of Listed Enterprises in China

Environmental information disclosure and green transformation: Evidence from Chinese manufacturing enterprises

Green transformation (GT) is pivotal for global sustainability, with environmental information disclosure (EDI) playing a significant role, especially in the Chinese corporate landscape. This study, spanning 2009 to 2020 and leveraging a comprehensive dataset of listed companies, explores the intricate relationship between EDI and GT in Chinese manufacturing enterprises by constructing a fixed-effect model. Motivated by the imperative to address crucial issues in GT in China, this research utilizes empirical data to uncover the mechanisms through which EDI fosters GT. The study reveals how EDI reinforces environmental consciousness within manufacturing firms. Findings underscore the crucial role of EDI in enhancing GT in manufacturing enterprises, operating through two primary mechanisms. Firstly, EDI alleviates financing constraints towards GT within these firms. Secondly, it facilitates the adoption of enhanced internal governance practices, catalyzing the development of high-quality capital renewal projects. A battery of mechanism tests provides robust evidence that EDI enhances environmental awareness, mitigates financing constraints, and amplifies the motivation and capability of manufacturing enterprises for GT. This multifaceted approach ultimately fosters high-quality GT within companies. Further research reveals that the incentive effect of EDI on GT is more significant among private enterprises and heavily polluting industries. The study reveals the subtle interplay between EDI and GT, highlighting its relevance to policymaking and practical considerations. It provides valuable insights into the ongoing pursuit of sustainability and the integration of green practices into the corporate world.

Corporate environmental, social, and governance information disclosure and audit governance in the context of green development

The purpose of this paper is to investigate the relationship between Environmental, Social, and Governance (ESG) disclosure and audit governance. The objective is to assess the impact of auditor team independence, auditor professional quality, and transparency of audit procedures on the quality of information disclosure, and to elucidate the role of these factors in advancing sustainable development. Research methodologies include the optimization of information disclosure text analysis using natural language processing (NLP) and text generation techniques, complemented by empirical analysis. Key findings indicate that the maximum error between NLP and manual annotation in the proportion of positive emotions in information disclosure is 0.03, and 0.06 in audit governance. The Rouge index score surpasses the 0.5 threshold, while the Perplexity value varies across three experiments, though remaining generally low. Deep learning model results reveal that auditor team independence, professional quality, and procedural transparency significantly enhance the quality of information disclosure. These findings offer crucial insights for enterprises, regulators, and investors, affirming the rationality and stability of the model, and providing valuable input for future green development strategies and decision-making processes.

Spatial–Temporal Development Trends and Influencing Factors of Government Environmental Information Disclosure: Empirical Evidence Based on China’s Provincial Panel Data

Government environmental information disclosure (GEID) plays an important role in promoting the digital transformation of environmental governance, leading the concept of sustainable development, enhancing public oversight capacity, and promoting democratic decision-making governance. Using provincial panel data from China spanning from 2009 to 2021, we conducted spatial data exploratory analysis and used the dynamic spatial panel model to investigate the spatial–temporal development trends and influencing factors of GEID. The results show that (1) GEID in China exhibits significant spatial agglomeration characteristics, with an “H-H” (High-High aggregation type) agglomeration characteristic observed in three national strategic development regions: Yangtze River Delta, southeast coastal areas, and Beijing–Tianjin–Hebei region. (2) The spillover effect from the southeast coastal provinces gradually radiates to the northwest, resulting in an overall westward movement of GEID. (3) GEID exhibits a significant path-dependency feature in the temporal dimension and a “peer effect” in the spatial dimension. (4) Population size has the greatest impact on GEID. Population size, public participation, and the industrial and transportation sectors positively influence GEID improvement at the local level. However, they generate negative spillover effects to neighbouring provinces. Environmental status and the size of the Real Estate sector have no significant effect. Therefore, China should strengthen regional cooperation, narrow regional disparities, cultivate new quality productive forces, establish a government-led proactive disclosure mechanism under public supervision, and improve the level of GEID at the national level.

Sustainable Institutional Investors and Green Innovation: Evidence from Chinese Listed Firms

ABSTRACT This study examines the impact of sustainable institutional investors’ participation in the green innovation activities of firms. We hypothesize that institutional investors with sustainable preferences integrate long-term environmental goals into their investment strategies, consequently enhancing green innovation outputs. Using a dataset of Chinese A-share listed firms, we find a significant positive relationship between the presence of sustainable institutional investors and corporate green innovation outputs. Further analysis reveals that these investors promote the disclosure of environmental information and improve firms’ ESG performance, thereby providing financial support for green innovation initiatives. Our findings demonstrate that sustainable institutional investors “walk the talk” by fostering green innovation.

Corporate environmental performance under the pressure of government environmental information disclosure

Prior research suggests that government regulations play an important role in corporate environmental performance (CEP). We investigate the role of government environmental information disclosure in CEP. Using a sample from the period 2008–2018 from China, we find strong evidence that government environmental information disclosure promotes CEP. The results are robust after a series of tests. We also find that analysts’ coverage and media coverage play an attenuating role in the relationship between government environmental information and CEP.

Does environmental information disclosure regulation improve environmental governance? Evidence from China

This study examines the effectiveness of Chinese environmental information disclosure (EID) regulations. We find that EID regulations improve firms' EID quality (i.e., exist information effect) and foster firms' green behavior (i.e., exist green effect). Mechanism analysis shows that due to lower audit risks, heavy-polluting firms are charged lower audit fees after the implementation of EID regulations; and due to less managerial myopia, heavy-polluting firms significantly increase green investment and green innovation following EID regulations. Additional heterogeneity analysis shows that these information and green effects can be strengthened by institutional environment factors, such as media coverage, audit quality and political cost.

Enhancing corporate carbon performance through green innovation and digital transformation: Evidence from China

This paper discusses the theoretical issues related to the mechanisms through which low-carbon technological innovation and digital transformation affect corporate carbon performance in the context of green and low-carbon transformation. Taking China as a case, this research selects listed manufacturing companies from 2013 to 2020 as the sample to explore the impact of green innovation on corporate carbon performance. The study finds that corporate green innovation effectively promotes the improvement of corporate carbon performance, and digital transformation positively moderates the relationship between green innovation and corporate carbon performance. Further analysis reveals that further enhances corporate carbon performance by improving environmental information disclosure and easing financing constraints.

Does ESG information disclosure increase firm value? The mediation role of financing constraints in China

This study examined the influence of environmental, social, and governance (ESG) information disclosure on firm value and the mediation effect of financing constraints using a panel of Chinese A-listed firms from 2013 to 2020. Based on linear regressions, we found that the relationship between ESG disclosure scores and firm value was significantly positive, and the results remained after robustness checks and endogenous tests. Furthermore, the mediation effect analysis indicates that the relationship is achieved by alleviating financing constraints. The subsample analyses showed that ESG disclosure scores positively affect firm value in non-state-owned, nonheavy polluting, and high-transparency firms. The results of each dimension’s relationship to firm value indicate that environmental and social dimensions significantly affected firm value in the panel data, whereas governance did not. Therefore, this paper determines the influence of ESG information disclosure and firm value in China and reveals the mediation effect of financing constraints, supplementing the influence mechanism of information disclosure and extending the previous studies bsed on the developed stock markets.

Identifying environmental information disclosure manipulation behavior via machine learning

Identifying environmental information disclosure manipulation behavior via machine learning

Conceptual framework to improve financial performance via institutional pressures and voluntary environmental information disclosure

This study delves into the intricate relationship between institutional pressures and financial performance, with a focus on the mediating role of voluntary environmental information disclosure (VEID). Grounded in institutional theory and the resource-based view (RBV), the study investigates how coercive, normative, and mimetic institutional pressures drive firms to adopt VEID, which in turn impacts their financial performance. VEID plays a pivotal role in allowing firms to convey their environmental performance, promoting transparency, and bolstering stakeholder trust. This heightened trust significantly contributes to improved financial performance by enhancing the firms' reputation and credibility. In addition to external communication, VEID also acts as a mechanism for internal performance enhancement, aligning firms' environmental strategies with institutional pressures. Through the integration of VEID practices, firms are better positioned to meet regulatory requirements, align with stakeholder expectations, and enhance operational efficiency. The findings underscore the critical importance of integrating voluntary environmental information disclosure within both institutional and resource-based strategies to attain sustainable financial performance and ensure long-term success in a competitive and environmentally conscious market.

Research on the Impact of Environmental Information Disclosure on Financial Performance

In the current global context of escalating environmental concerns, it has become increasingly crucial for enterprises to disclose environmental information in order to effectively communicate their environmental performance and risk management with external stakeholders. This is particularly pertinent for publicly traded companies in heavily polluting industries, as the disclosure of environmental information not only impacts corporate reputation and image, but also directly affects their financial sustainability. Therefore, this study aims to investigate the influence of environmental information disclosure on the financial performance of publicly traded companies in heavily polluting industries, while also examining how property rights moderate this relationship. Drawing from previous research, this paper presents corresponding research hypotheses and constructs a comprehensive research model. The empirical analysis serves as the primary research method, allowing for an in-depth exploration of sample data to uncover the intricate connection between environmental information disclosure and financial performance within heavily polluting industries, as well as how property rights factor into this dynamic. Ultimately, this study contributes to enhancing our theoretical understanding of the link between environmental information disclosure and corporate financial performance, providing a scientific basis for government policy formulation and offering practical guidance for listed companies in heavily polluting industries seeking to improve both their financial sustainability and environmental performance.

Driving effect of digital government policy on synergy in corporate pollution reduction, carbon reduction, and green expansion

This study constructs an index on synergy of corporate carbon reduction, pollution reduction, and green expansion (PCG), and uses a difference in difference model to test the impact of digital government (DGO) on PCG. Results show that DGO significantly promotes PCG, and compared to companies without DGO, DGO can lead to a 2.4% increase in PCG. And, DGO may promote PCG by increasing environmental information disclosure, environmental subsidies and environmental regulations. In the heterogeneity, DGO has a higher promoting effect on PCG in eastern enterprises, heavily polluting industries, and state-owned enterprises. Furthermore, digital financial support, media supervision, and public participation will promote the positive effect of DGO on PCG. This study aims to provide implications for promoting PCG and empirical reference for promoting DGO.

Exploring the missing link between top management teams' characteristics and environmental information disclosures of construction corporations

PurposeGiven the heavy pollution feature of the construction industry, construction corporations need to adopt an effective environmental governance strategy. The quality and quantity of environmental information disclosure (EID) implementation, as an essential part of a corporate environmental governance strategy, is impacted by the characteristics of the top management team (TMT). This paper aims to analyze the relationship between the demographic characteristics of the TMT (i.e. gender, age, tenure, educational level, and duality) and corporate EID.Design/methodology/approachUsing data from listed construction corporations generated between 2014 to 2018 in China, this study employs the Tobit regression model to test the research hypotheses. Also, this study applies a novel analytical approach, necessary condition analysis (NCA), to conduct a series of additional tests.FindingsThe results reveal that tenure and educational level are significantly and positively related to EID, while gender, age, and duality in the executive role are not significantly related to EID. When considering the TMT size as a moderator, the TMT age is positively related to the corporate EID, and the size of the TMT acts as a moderator to weaken the positive effect of the TMT age on the EID. The NCA results show that TMT gender, age, tenure, and educational level are necessary when the levels of EID exceed 40%.Originality/valueOur findings suggest that TMT characteristics have a relatively significant effect on corporate EID levels, which extends EID research to the construction industry. Corporate planners can endeavor to shape TMT characteristics to improve EID levels. The results of NCA provide insights into what TMT characteristics construction corporations need to satisfy in their pursuit of transparent EID, as well as the levels at which these characteristics are desired.

Regional digitalization and corporate ESG performance

Against the backdrop of rapid digitalization growth and deep integration with the real economy, companies are faced with more extensive and complex social responsibilities. Based on the data of 1178 A-share listed companies in China's Shanghai and Shenzhen markets from 2014 to 2021, this study empirically analyses the impact of regional digitalization on corporate ESG performance by constructing a double-difference model using the establishment of China's National Pilot Zone for the Innovative Development of the Digital Economy. This paper found that regional digital construction can improve corporate ESG performance by enhancing corporate environmental information disclosure, improving the scale of social donations, and enhancing risk resilience. In addition, the higher the level of public environmental concern in the region, the more obvious the enhancement of digital construction on corporate ESG performance. The contribution of regional digital construction to corporate ESG is also stronger in firms with high executive environmental awareness than in those with low. At the same time, this paper also responds to some scholars' questioning of corporate ESG by verifying that corporate ESG report disclosure is motivated by corporate sustainability rather than self-impression management from the dimensions of corporate management's manipulation of information and the corporate's actual environmental behavior. This paper enriches the research on the impact of the external digital environment on corporate ESG performance. It is of great significance for developing countries to promote the active participation of enterprises in ESG practices through the opportunity of digital development.