Level Of Information Disclosure Research Articles

How green credit affects corporate environmental information disclosure: evidence from new energy listed companies in China

IntroductionEnvironmental information disclosure is an important means to protect the ecological environment, and global climate change puts forward higher requirements for corporate environmental information disclosure. New energy companies play an important role in addressing climate change and environmental information disclosure, and should strengthen environmental information disclosure and actively participate in ecological environmental protection.MethodsThis paper selected Chinese new energy listed companies as the research sample to investigate the impact of green credit on corporate environmental information disclosure, and proposed and empirically tested the hypothesis on the mechanism of the effect of green credit on environmental information disclosure.ResultsThe regression results indicated that green credit can effectively improve the quality of corporate environmental information disclosure, and this conclusion is still significantly valid after robustness test; The impact mechanism tests showed that green credit can change the level of corporate environmental information disclosure by controlling company size. This paper also tested the heterogeneity and adjustment effects, showing that the relationship between green credit and environmental information disclosure are affected by multiple factors.DiscussionsCombining the research of this paper and previous research results, it is found that the positive impact of green credit on corporate environmental information disclosure has been confirmed by academic research and practical verification. However, the implementation effect of green credit policy will be affected by the economic level, regional differences, and the comprehensive impact from companies, financial institutions and government departments.

The nonlinear relationship between resource endowments and carbon emissions: threshold effects of marketization degree and urban services agglomeration

ABSTRACT With increasing carbon emissions, previous studies surrounding the relationship between resources and carbon emissions mainly focus on the linear framework. However, there are countries with high resource endowments and low carbon emissions, which can’t be explained by the linear framework. Therefore, this study revisits this issue from the perspective of curvilinear threshold model using data of 56 COP26 member countries from 2002 to 2021. Results show that the association between resource endowments and carbon emissions is curvilinear based on two threshold variables: marketization degree and urban services agglomeration. Before they reach certain levels, resource endowments aggravate carbon emissions. After that, resource endowments help carbon reduction. Unlike previous studies that hold resource endowments aggravate emissions, this study finds a condition where resource endowments help sustainable environmental growth. This study also finds that the two threshold variables change with different levels of environmental regulations, R&D expenditures, and enterprise information disclosure. The more favourable these three factors create an easier path to take advantage of resources to reduce carbon emissions. Accordingly, this study recommends enhancing marketization degree and urban services agglomeration to cross the threshold value, and formulating related policies based on countries’ conditions with regards to the three moderate factors.

The impact of air pollution on corporate environmental information disclosure–Evidence from heavy pollution industries in China

This paper studies the relationship between air pollution and the quality of environmental information disclosure taking the A-share listed companies in Shanghai and Shenzhen from 2014 to 2020 as sample. The study found that: firstly, air pollution will reduce the quality of enterprise environmental information disclosure. The main reason is that senior executives living in air pollution areas are more likely to have negative emotions, and the negative emotions of senior executives will make them have a negative attitude towards environmental information disclosure, thus reducing the quality of environmental information disclosure of enterprises. Second, the nature of state-owned enterprises positively regulates the negative correlation between air pollution and enterprise environmental information disclosure, while senior executive shareholding weakens the relationship between air pollution and environmental information disclosure. Further analysis found that: first, air pollution reduces the level of non-monetary and monetary environmental information disclosure. The research provides empirical evidence that air quality changes affect micro-business behavior.

Blockchain adoption in retail operations: Stablecoins and traceability

Retailers are embracing cryptocurrency payments to gain a competitive edge. However, the high volatility of traditional cryptocurrencies, such as Bitcoin, deters risk-averse consumers from using them regularly. This issue is particularly salient in retail markets with high product return rates, as consumers may bear the volatility risk by directly holding cryptocurrencies after claiming a refund. In real-world operations, collateralized stablecoins are proposed as a solution for transaction settlements, yet they still exhibit short-term volatility, as shown by empirical evidence. In this context, retailers can reduce the likelihood of returns by leveraging blockchain traceability to disclose information. This study analytically investigates how the retailer effectively utilizes the two blockchain functions to enhance firm profitability and increase consumer surplus. Our analysis shows that the retailer may offer a stingy or generous refund policy with blockchain adoption, depending on the degrees of information disclosure and price volatility. Next, we find that blockchain adoption always benefits consumers, though it may decrease social welfare. Interestingly, the benefit brought by blockchain to consumers declines if information is oversupplied. Further, we discover that blockchain adoption is likely to increase retailer profit when the information disclosure level is polarized (i.e., very high or low). Finally, the analysis reveals that greater stability of stablecoins benefits the retailer but hurts consumers. The reason for this seemingly counterintuitive result is that having stablecoins with better stability allows the retailer to charge a high price.

Which institutional investors can improve the level of corporate ESG information disclosure?

The inconsistency of existing findings on the relationship between institutional investors' shareholdings and the level of corporate Environmental, Social and Governance (ESG) disclosure may lie in the insufficient consideration of the heterogeneity of institutional investors and investee firms. In this paper, from the perspective of institutional investor heterogeneity, we use a two-way fixed effects model to examine the impact of institutional investors on corporate ESG disclosure and the possible mechanism of this impact using a sample of Chinese A-share-listed firms from 2012 to 2020. We show that institutional investor shareholding can improve the level of corporate ESG information disclosure by enhancing auditor supervision and analyst attention to these external supervision. In terms of institutional investor heterogeneity, it is found that independent institutional investors and stable institutional investors play a stronger role in promoting the level of ESG information disclosure. Moreover, the positive net effect of the institutional investors on improving the level of ESG information disclosure is more pronounced in non-heavily polluting industries and state-owned enterprises. This paper enriches the impact of institutional investors' shareholding on corporate ESG disclosure from a heterogeneity perspective.

Corporate environmental disclosures and financial distress: evidence from an emerging market

This study examines the effect of corporate environmental disclosures on financial distress in Vietnam. From sustainability reports and annual reports of firms listed on the Ho Chi Minh Stock Exchange, we manually collected a dataset on environmental information disclosures about seven management standards, including the utilization of raw materials, energy usage, water consumption, conservation of land and soil, gas emissions, wastewater and solid waste, and compliance with environmental protection laws. We measure the level of environmental information disclosures based on the counts of these standards that a firm has disclosed and employed both Altman’s Z-score and Ohlson’s O-score as proxies for financial distress. The research sample includes 269 firms from 2015 to 2020. The findings indicate that firms with better corporate environmental disclosures tend to have lower financial distress levels. The results are robust with respect to different measures of environmental information disclosures and financial distress, and have implications for investors, creditors, and policymakers. We contribute to the literature by providing evidence from a frontier market with weak legal institutions, where various environmental issues and regulations about disclosing environmental information have just gone into effect.

The Impact of Corporate Environmental Information Disclosure on Investor Attitudes in A Carbon Neutral Context

With the rapid development in the field of technology and production, the adverse consequences of energy-intensive industries have become impossible to ignore. The frequent occurrence of extreme weather, loss of biodiversity, and degradation of ecosystems across the globe has made the process of global environmental governance particularly urgent. In order to meet the needs of sustainable development strategies, many countries have begun to emphasize the fulfillment of corporate environmental responsibility and have put forward a series of requirements for environmental information disclosure. At the same time, the general public has also actively responded to the state's call to monitor corporate emissions behavior. This study focuses on individual investors in China's capital market, using a survey method of designing a scale, distributing a questionnaire, and analyzing it with SPSS to explore their attitudes toward environmental information disclosure of heavily polluting enterprises. The study finds that investors are more favorable to enterprises with higher levels of environmental information disclosure, especially in today's environmentally conscious world. Such disclosure not only increases public trust in the enterprise and enhances its image, but also helps investors to more accurately assess the long-term value and sustainable development prospects of the enterprise. This study aims to provide more targeted and effective disclosure strategies for enterprises to promote the realization of both economic and social benefits. This study provides important insights and guidance for Chinese heavy polluters in addressing environmental challenges and sustainable development.

ESG RATINGS AND THE INVESTOR DECISION-MAKING PROCESS: A COMPARATIVE ANALYSIS OF RATING AGENCIES DATA AND ITS EFFECT ON FINANCIAL PERFORMANCE

Purpose- The purpose of this study is to engage in scholarly research in order to examine the correlation between environmental, social, and governance performance (ESGP) and financial performance (FP) across various industries. The aim is to enhance the overall comprehension of how variations in ESG scores from two rating agencies can potentially impact the relationship between ESGP and FP. Methodology- This study undertakes a comparative and descriptive analysis of panel data comprising 464 companies operating in environmentally sensitive sectors worldwide. The dataset covers the period from 2011 to 2020 and incorporates ESG ratings from Bloomberg and Refinitiv databases, as well as the financial performance metric return on assets (ROA) sourced exclusively from Refinitiv covering the times series of 2012 to 2021. Findings- According to our research, there is evidence of a relationship between ESG scores and return on assets (ROA), with distinct correlations depending on the rating agencies employed. Specifically, Refinitiv ESG scores demonstrate a negative correlation with ROA, while Bloomberg ESG scores reveal a positive correlation. Additionally, our study highlights a positive correlation specifically between the Bloomberg environmental score and ROA. Conclusion- Previous scholarly studies have already established a correlation between the level of information disclosure displayed by corporations and the aforementioned matter being investigated. However, our research suggests that the varying findings documented in existing academic papers may also stem from the utilization of ESG score data sourced from various rating agencies. Keywords: ESG performance, financial performance, ROA, panel data analysis, rating agencies JEL Codes: Q56, G24, C33

The influence of work safety information disclosure on performance of listed companies in high-risk industries: Evidence from Shenzhen stock Exchange

The disclosure of work safety information of listed companies in high-risk industries is an important aspect of their social responsibility, and it is also an inevitable requirement to meet the right of stakeholders to know, which has a far-reaching impact on the development of enterprises. In order to clarify the impact mechanism of work safety information disclosure on enterprise performance of listed companies in high-risk industries. 222 listed companies in high-risk industries were taken as the research object, and the multiple regression analysis method was used to analyze the relationship between the level of work safety information disclosure of enterprises and their financial performance, safety performance and social reputation. The results show that the work safety information disclosure of listed companies in high-risk industries has a positive impact on corporate financial performance, safety performance and social reputation; unabsorbed slack resources have a positive U-shaped regulatory effect on work safety information disclosure and enterprise social reputation; The shareholding ratio of institutional investors has an inverted U-shaped regulatory effect on the positive relationship between work safety information disclosure and enterprise social reputation. This study has enriched the theoretical and practical exploration of research on work safety information disclosure. It can help improve the level of work safety information disclosure and safety management in enterprises, while guiding the sustainable development of occupational health and safety within these organizations.

Business strategy and environmental information disclosure from a Confucian cultural perspective: Evidence from China

AbstractBased on social contract theory, this study investigates the impact of business strategy on environmental information disclosure from an informal institutional perspective. Using empirical data from a panel of Chinese listed A‐share firms in Shanghai and Shenzhen from 2010 to 2020, we demonstrate that firms following prospector strategies have higher levels of environmental information disclosure compared to those following defender strategies. Our findings also reveal that Confucian culture positively moderates the relationship between business strategy and environmental information disclosure. Specifically, we find that when environmental uncertainty increases, the moderating effect of Confucian culture weakens, while effective legal supervision strengthens the positive moderating effect of Confucian culture. Additionally, our results show that business strategy affects environmental information disclosure through the dual channels of economic benefits contract and social recognition contract. Overall, this research provides valuable insights for corporate sustainable development and effective government environmental governance.

Does the carbon emissions trading scheme improve the corporate environmental information disclosure level? Evidence from China

Recently, a great deal of literature has discussed the effects of the carbon emissions trading scheme (CETS) and the factors that affect the corporate environmental information disclosure (CEID) level. However, no researchers have studied how CETS affects the CEID level. Based on a difference-in-difference-in-differences model, we discover that CETS can improve the CEID level. The findings are robust and persistent even after testing for time lags and leads effects, changing the measure of the dependent variable, testing for enterprise relocation, adjusting the fixed effect method, testing for concurrent policies, and performing placebo tests. The reason is that CETS can encourage corporate green technology innovation and environmental protection investment, thus improving the CEID level. Further investigation reveals that the impact of CETS on promoting the CEID level is more significant when the following conditions are met: the enterprises are in provinces and cities in the east and northeast; they are state-owned; and they have strong political connections. This paper expands on the current field of research on the influence effects of CETS, broadens the understanding of the factors influencing the CEID level, and investigates the mechanism by which CETS improves the CEID level.

Forward-Looking Information and its Determinants: an Empirical Evidence from Listed Pharmaceutical Firms of Bangladesh

The purpose of this paper is to examine the factors that affect how forward-looking information is disclosed by Bangladeshi 's listed pharmaceutical firms. In this study, a total sample of 115 firms from 23 pharmaceutical firms listed on the Dhaka Stock Exchange (DSE) is considered from the period of 2016 to 2020. Board size, board independence, gender diversity, firm size, leverage, liquidity, and profitability are used as the determinants of forward-looking information. According to the descriptive statistics, the average level of extent of forward-looking information is only 59.33%, which is inadequate for the pharmaceutical industry to survive in the long term. The multiple regression results show that the level of forward-looking information disclosure is positively and significantly associated with board size, firm size, and firm profitability. But the regression results documented that gender diversity, leverage and liquidity and board independence have no significant association with forward-looking information. The findings of this study suggest that companies should focus more on forward-looking information to survive in the market and pursue a competitive advantage. Moreover, the findings of this study also suggest that further research can be conducted using qualitative research in a different sector as well as a cross-country comparison.

Application of environmental protection investment benefit model of coal enterprises in environmental protection construction of smart city

The purpose is to strengthen the construction and application of smart environmental protection cities and establish the benefits model of enterprise environmental protection investment (EPI). This paper introduces its related concepts based on EPI and financial performance theory. It analyzes the current situation and existing problems of EPI, environmental information disclosure level (EADI), and financial performance of the coal industry and enterprises. The raw coal output and growth rate in China from 2015 to 2021, the output of major coal-producing areas from 2018 to 2021, and the revenue and profit statistics of coal enterprises from 2017 to 2021 are collected and studied. The quantitative indicators (financial performance, EPI, and EADI) are selected to verify the results. Descriptive statistics, correlation analysis, and moderating effect analysis are chosen to analyze the related explained, explanatory, intermediary, and control variables. Among them, there is an obvious positive correlation between the EPI and the EADI of coal enterprises, and the EPI of coal enterprises has a positive impact on financial performance. The EADI of coal enterprises plays a partial mediating effect on the impact of EPI on financial performance. Additionally, the correlation analysis determines the correlation between EPI, EADI, and the financial performance of coal enterprises. Finally, the regression analysis is carried out again by replacing variables. The regression results are consistent with the previous conclusions, increasing the empirical results' robustness. It is concluded that improving the EADI will give enterprises better future financial data.

Market discipline and the risk‐taking behaviour of banks in India

AbstractAfter the financial crisis, the Indian banking system has accumulated a mountain of bad loans which has crippled the banking sector and halted the credit flow to the industry. Several immediate causes for the bad loan crisis have been pointed out. However, poor market discipline, the ultimate root cause of the bad loan crisis, has not been paid adequate attention. This study seeks to investigate how effectively the market disciplinary forces, captured through information disclosure, interbank deposits, concentration and ownership structure, incentivise the Indian banks to adopt prudential risk management by enhancing their risk‐weighted capital ratio. The findings of the study show that information disclosure and interbank deposits do not induce prudential risk behaviour among banks in India. However, with increasing concentration in the banking sector, a higher level of information disclosure effectively induces banks to maintain higher capital ratios, but inter‐bank deposits do not have any significant effect on bank capital. We also observe that government banks maintain lower capital ratios as compared to private banks indicating government banks' higher expectation of government bailout.

A Model of ESG-Transparency Index in Corporate Reporting

The increasing importance of Environmental, Social, and Governance (ESG) assessments in advancing the international sustainable development agenda necessitates the disclosure of ESG reporting information by public companies. Such disclosure plays a crucial role in facilitating effective global business communication with stakeholders and enhancing the credibility of ESG transparency measurements. The primary objective of this study is to develop and validate a robust model for a business transparency index. By leveraging mathematical tools, this model quantitatively measures the level of Environmental, Social, and Governance (ESG) transparency, taking into account the requirements of stakeholders and evaluating a public company's ability to disclose comprehensive information.The research hypothesis posits that assessing ESG transparency in public company reporting based solely on the "quantity" of estimated values, while neglecting the critical factors of "quality" and "reliability," undermines the accuracy and reliability of the results. By utilizing existing mathematical tools, a business value management model is constructed, incorporating a balanced system of "quantity," "quality," and "reliability" factors present in the ESG information disclosed in public company reports.The research methodology adopts a comprehensive approach, combining logical and structural analysis, mathematical modeling, and content analysis methods. A thorough examination of the regulatory framework, international and Russian practices, and scientific research in ESG disclosure reveals the emergence of authoritative professional standards and frameworks between 2000 and 2023. These standards and frameworks play a pivotal role in shaping the disclosure of financial and non-financial information related to sustainable development in corporate reporting. However, a significant gap exists in established practices for determining ESG transparency levels. Current "transparency indices" fall short in incorporating these factors, leading to methodological incomparability and gaps in assessing the "quality" and "reliability" of estimated values.To address this gap, the authors propose a novel mathematical model for the ESG transparency index in corporate reporting. This model effectively integrates the factors of "quantity," "quality," and "reliability" within the disclosed information of public companies. Through a comparative analysis of disclosure and verification practices across various types of activities within Russian public joint-stock companies (PJSCs), the established model enables the creation of an industry rating gradation. This rating gradation assists in determining the level of information disclosure about public companies' activities, fulfilling societal (state) requirements and optimizing business objectives.

Effects of board characteristics on information asymmetry: Evidence from the alternative investment market

This study aimed to investigate the effect of board characteristics on information asymmetry as well as examining whether the disclosure environment moderates the association between board structure and the information asymmetry of listed firms in the UK. We primarily focus on six characteristics of board composition (board size, board independence, board financial expertise, board busyness, CEO duality, and board gender diversity) and their impact on the bid–ask spread (employed as a proxy of information asymmetry). This study used the ordinary least squares (OLS) model to examine these associations. Moreover, we used system GMM and lag estimation models to test for endogeneity problems. Using a sample of 5950 observations representing the non-financial firms listed on the Alternative Investment Market (AIM) for 10 years from 2010 to 2019, we found a negative and significant relationship between board size; board independence; and female directors and information asymmetry. However, board busyness and CEO duality are positively related to information asymmetry. Furthermore, we demonstrate that information disclosure moderates the relationship between board characteristics and information asymmetry; that is, board size, independent directors, and female directors mitigate information asymmetry by improving the level of information disclosure. By contrast, busy directors and CEO duality increase the problem of information asymmetry by reducing firms’ information disclosure. The results of this study have implications for UK regulators, firm boards of directors, and firm stakeholders.

Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention

AbstractIn the context of the global economy's green and low‐carbon development, companies are paying increasing attention to environmental management. This study compiles statistics on Chinese listed firms from 2010 to 2020 and examines the influence of CEOs' environmental background on corporate environmental management information disclosure based on imprinting theory. It found that CEOs with environmental backgrounds are more willing to disclose corporate environmental management information, and the level of disclosure is high. By attracting media attention and reducing the company's financing constraints, CEOs with an environmental background can enhance the level of corporate environmental management information disclosure, according to the analysis of the impact mechanism. Further research revealed that CEO environmental background promoted corporate environmental management information disclosure more significantly in state‐owned and heavily polluting enterprises.

The optimal vehicle product line strategy considering product information disclosure under government carbon regulation

As customers focus on information disclosure of new energy vehicles and automakers attach great importance to product line strategies under carbon regulation, we study the manufacturer's optimal product line strategy considering product information disclosure under the government's carbon regulation. This study contributes to the emerging vehicle product line area by investigating how manufacturers can establish reasonable vehicle product lines and the impact of different carbon regulation policies on product line strategies. Through comprehensive analyses, we find that the carbon tax rate and carbon trading price affect the revenue of different product lines of the manufacturer and the information disclosure level of products. Importantly, we find that if the valuation (market price) of fuel vehicles is low, manufacturers should adopt a single product line strategy. Conversely, if the valuation (market price) of fuel vehicles is high, manufacturers should adopt a hybrid product line strategy. Moreover, our analyses indicate that when the market valuation of new energy vehicles is high and the valuation of fuel vehicles is low, or when the market valuation of new energy vehicles is low and the valuation of fuel vehicles is moderate, manufacturers prefer to produce new energy vehicle to fuel vehicle. In terms of regret aversion strategies for product line design, our research reveals that a low carbon tax rate (carbon trading price) is beneficial to the fuel vehicle, while a high carbon tax rate(carbon trading price) and high information disclosure cost are beneficial to the revenue of new energy vehicle. Finally, we obtain the automakers’ preferences for carbon regulatory policies through manufacturers’ willingness to disclose information, tax rate and carbon trading price.

Forward looking statement, investor sentiment and stock liquidity

Information is a critical element of capital markets, and liquidity is the lifeblood of capital markets. Relative to historical information, forward-looking information is of significant value to investors. Based on textual analysis calculations, we selected Chinese A-share listed companies as a research sample to explore the impact of forward-looking information disclosure level on stock liquidity. It is found that the higher the level of forward-looking information disclosure, the better the stock liquidity. Investor sentiment is the transmission mechanism through which the forward looking statement disclosure level affects stock liquidity. The heterogeneity analysis shows that the level of forward-Looking statement disclosure has a more significant effect on stock liquidity improvement for state-owned enterprises and enterprises in low-market regions than those in regions with high marketization levels. The article expands and enriches the research on forward-looking information disclosure, and also has some reference value for regulators to formulate laws and regulations and regulate forward-looking information disclosure.

Can Environmental Information Disclosure Enhance Firm Value?-An Analysis Based on Textual Characteristics of Annual Reports.

This study examines the impact of environmental information disclosure quality on firm value for Chinese listed companies in heavily polluting industries from 2010 to 2021. By controlling for the level of leverage, growth, and corporate governance, a fixed effects model is constructed to test this relationship. Furthermore, this study analyzes the moderating effects of annual report text features, such as length, similarity, and readability, on the relationship between environmental information disclosure and firm value and the heterogeneous impact of firm ownership on this relationship. The main findings of this study are as follows: There is a positive correlation between the level of environmental information disclosure and firm value for Chinese listed companies in heavily polluting industries. Annual report text length and readability positively moderate the relationship between environmental information disclosure and firm value. Annual report text similarity negatively moderates the relationship between environmental information disclosure and firm value performance. Compared with state-owned enterprises, the impact of environmental information disclosure quality on the firm value of no-state-owned enterprises is more significant.