Level Of Information Disclosure Research Articles

Media pressure, internal control, and corporate environmental information disclosure

This article delves into the intricate connection between media pressure, corporate environmental information disclosure, and internal controls. It uncovers that media pressure and internal controls exert a substantial influence on corporate environmental information disclosure. Media pressure serves as a catalyst, compelling companies to bolster their environmental information disclosure in response to public concerns and market demands, thereby augmenting their reputation and image. Notably, online media pressure plays a particularly significant role in this regard. Conversely, a robust internal control system enhances the level of corporate environmental information disclosure. In the context of the relationship between media pressure and corporate environmental information disclosure, internal controls assume a mediating role.

Trust and inter-regional M&As: Evidence from China

This paper investigates the economic impact of trust on inter-region mergers and acquisitions (M&As) using a large sample of M&As in China. We find that trust distance among regions negatively predicts frequency of inter-region mergers, merger volume and synergy gains. Economic mechanism analysis shows that trust distance lowers merger gains through imposing transaction cost on the deal. The negative effects of trust distance on inter-region M&As activities and synergy gains are less pronounced when legal institution level distance between regions are smaller, consistent with trust being a substitute for formal institutions; it is less prominent when corporate governance and information disclosure level distance between regions are smaller, suggesting that trust is more important in transactions with higher information asymmetry; it is less salient when financial market development level distances between regions are smaller, consistent with trust is less important with repeated interactions between economic parties. Overall, our results highlight the role trust plays in shaping corporate decisions and economic outcomes.

The Differences of Registration Systems in Chinese and the U.S. and Implications

As a matter of fact, registration systems are crucial for stock markets and financing of companies, which is different in different countries and regimes. In November 2013, the purpose of China securities regulatory commission is to strength the status of market as the role of resource allocation. With the continuous development the issuance, trading system of listed companies’ reforms registration system, which promotes the efficiency of market operation and information disclosure level. With this in mind, this paper tracks the history of registration system in the United States, analyses the risk in the progress of market registration. Due to significant different political and cultural system, this paper also discusses the differences between the registration systems of China and the United States, the reasons for the differences and the enlightenment to the development of the registration system in China. Overall, these results shed light on guiding further exploration of registration system development.

Nonlinear effects of enterprise digital transformation on environmental, social and governance (ESG) performance: evidence from China

PurposeThe purpose of this study is to investigate whether the corporate environmental, social and governance (ESG) performance of enterprise is influenced by the enterprise digital transformation. In addition, this study explains how enterprise digital transformation affects ESG performance.Design/methodology/approachThe sample covers 4,646 nonfinancial companies listed on China’s A-share market from 2009 to 2021. The study adopts the fixed-effects multiple linear regression to perform the data analysis.FindingsThe study finds that enterprise digital transformation has a significant inverted U-shaped impact on ESG performance. Moderate digital transformation can improve enterprise ESG performance, whereas excessive digital transformation will bring new organizational conflicts and increase enterprise costs, which is detrimental to ESG performance. This inverted U-shaped effect is more pronounced in industrial cities, manufacturing industries and enterprises with less financing constraints and executives with financial backgrounds. Enterprise digital transformation mainly affects ESG performance by affecting the level of internal information communication and disclosure, the level of internal control and the principal-agent cost.Practical implicationsThe government should take multiple measures to encourage enterprises to choose appropriate digital transformation based on their own production behaviors and development strategies, encourage them to innovate and upgrade their organizational management and development models in conjunction with digital transformation and guide them to use digital technology to improve ESG performance.Social implicationsThis study shows that irrational digital transformation cannot effectively improve the ESG performance of enterprises and promote the sustainable development of the country. Enterprises should carry out reasonable digital transformation according to their own development needs and finally improve the green and sustainable development ability of enterprises and promote the sustainable development of society.Originality/valueThis study examines the relationship between enterprise digital transformation and ESG performance. Different from the linear relationship between the two in previous major studies, this study proves the inverse U-shaped relationship between enterprise digital transformation and ESG performance through mathematical theoretical model derivation and empirical test. This study also explores in detail how corporate digital transformation affects ESG performance, as well as discusses heterogeneity at the city, industry and firm levels. It is proposed that enterprises should take into account their own characteristics and carry out reasonable digital transformation according to their development needs.

Does the resignation of an independent director affect audit fees? An empirical study based on Chinese A-share listed companies

Based on the data of Chinese A-share listed companies from 2006 to 2020, the article empirically examines the impact of independent directors quitting on audit fees when it occurs in listed companies, using independent directors quitting as an entry point. The empirical results show a significant positive relationship between independent directors quitting and audit fees and the positive effect still holds after controlling for firm fixed effects, instrumental variable method, and variable substitution test. The above effect is the early resignation of independent directors, more significant in listed companies of a nonstate nature, employing nonBig Four accounting firms, and firms where the positions of chairperson and general manager are separated. Furthermore, this study provides empirical evidence for the study of the effect between independent directors' quit and audit fees. The results also have some reference value for listed companies to improve the information disclosure level and how auditors make reasonable pricing.

Current Situation and Consequences of Environmental Information Disclosure in China's Automobile Manufacturing Industry --Taking SAIC Motor Corporation Limited as an Example

A sincere commitment to establishing a community of human destiny is made through achieving carbon peak and carbon neutrality. Following the pace of affluent nations, China has incorporated carbon peak and carbon neutrality into overall economic and social development. Environmental information disclosure is the most basic and major part of environmental accounting, following the sustainable development strategy because of daily accounting supervision and accounting. In this research, a case study of SAIC Group's environmental information disclosure in China from 2019 to 2022 is chosen, and analyzes SAIC Group's operating capacity, profitability, solvency and development capacity by combining information asymmetry theory and stakeholder theory. This paper investigates the roots of environmental information disclosure in the automobile manufacturing industry, chooses a representative SAIC Group to summarize its environmental information disclosure, assesses the current level of corporate environmental information disclosure, and provides relevant departments with pointers and relates for the development of an environmental information disclosure system for enterprises in this industry. Finally, optimization recommendations are offered for the growth of listed businesses' environmental information disclosure in China's vehicle manufacturing sector.

What should a robot disclose about me? A study about privacy-appropriate behaviors for social robots.

For robots to become integrated into our daily environment, they must be designed to gain sufficient trust of both users and bystanders. This is in particular important for social robots including those that assume the role of a mediator, working towards positively shaping relationships and interactions between individuals. One crucial factor influencing trust is the appropriate handling of personal information. Previous research on privacy has focused on data collection, secure storage, and abstract third-party disclosure risks. However, robot mediators may face situations where the disclosure of private information about one person to another specific person appears necessary. It is not clear if, how, and to what extent robots should share private information between people. This study presents an online investigation into appropriate robotic disclosure strategies. Using a vignette design, participants were presented with written descriptions of situations where a social robot reveals personal information about its owner to support pro-social human-human interaction. Participants were asked to choose the most appropriate robot behaviors, which differed in the level of information disclosure. We aimed to explore the effects of disclosure context, such as the relationship to the other person and the information content. The findings indicate that both the information content and relationship configurations significantly influence the perception of appropriate behavior but are not the sole determinants of disclosure-adequacy perception. The results also suggest that expected benefits of disclosure and individual general privacy attitudes serve as additional influential factors. These insights can inform the design of future mediating robots, enabling them to make more privacy-appropriate decisions which could foster trust and acceptance.

How Do Users Experience Traceability of AI Systems? Examining Subjective Information Processing Awareness in Automated Insulin Delivery (AID) Systems

When interacting with artificial intelligence (AI) in the medical domain, users frequently face automated information processing, which can remain opaque to them. For example, users with diabetes may interact daily with automated insulin delivery (AID). However, effective AID therapy requires traceability of automated decisions for diverse users. Grounded in research on human-automation interaction, we study Subjective Information Processing Awareness (SIPA) as a key construct to research users’ experience of explainable AI. The objective of the present research was to examine how users experience differing levels of traceability of an AI algorithm. We developed a basic AID simulation to create realistic scenarios for an experiment with N  = 80, where we examined the effect of three levels of information disclosure on SIPA and performance. Attributes serving as the basis for insulin needs calculation were shown to users, who predicted the AID system’s calculation after over 60 observations. Results showed a difference in SIPA after repeated observations, associated with a general decline of SIPA ratings over time. Supporting scale validity, SIPA was strongly correlated with trust and satisfaction with explanations. The present research indicates that the effect of different levels of information disclosure may need several repetitions before it manifests. Additionally, high levels of information disclosure may lead to a miscalibration between SIPA and performance in predicting the system’s results. The results indicate that for a responsible design of XAI, system designers could utilize prediction tasks in order to calibrate experienced traceability.

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.