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A Tale of Two Segmented Markets in China: The Informative Value of Corporate Environmental Information Disclosure for Foreign Investors

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  • Du, Xingqiang

Abstract

Focusing on the unique setting of two segmented stock markets in China and using a sample of Chinese listed firms issuing both A-shares and B-shares during the period of 2007–2014, this study examines the influence of corporate environmental information disclosure on foreign share discount, and further investigates the moderating effect of globalizing the board. The findings show that environmental information disclosure is significantly negatively related to foreign share discount, suggesting that environmental information disclosure provides valuable and incremental information to mitigate information asymmetry between domestic and foreign investors, and thus reduces foreign share discount. Moreover, globalizing the board reinforces the negative relation between environmental information disclosure and foreign share discount. These findings are robust to alternative measures of environmental information disclosure and foreign share discount, and further, these conclusions are still valid after controlling for the endogeneity problem.

Suggested Citation

  • Du, Xingqiang, 2018. "A Tale of Two Segmented Markets in China: The Informative Value of Corporate Environmental Information Disclosure for Foreign Investors," The International Journal of Accounting, Elsevier, vol. 53(2), pages 136-159.
    • Handle: RePEc:eee:accoun:v:53:y:2018:i:2:p:136-159
    DOI: 10.1016/j.intacc.2018.05.001
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    Cited by:

    1. Liping Wang & Yuqi Shang & Shuqin Li & Chuang Li, 2023. "Environmental Information Disclosure-Environmental Costs Nexus: Evidence from Heavy Pollution Industry in China," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    2. Jing‐Yue Liu & Yue‐Jun Zhang & Charles H. Cho, 2023. "Corporate environmental information disclosure and green innovation: The moderating effect of CEO visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3020-3042, November.
    3. Imaduddin Murdifin & Muhammad Faisal AR Pelu & Aditya Aditya Halim Putra & A. Muara Arumbarkah & Muslim Muslim & Aulia Rahmah, 2019. "Environmental Disclosure as Corporate Social Responsibility: Evidence from the Biggest Nickel Mining in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 115-122.
    4. Xu Cheng & Dongmin Kong & Xinwei Zheng & Qi Tang, 2022. "Do foreign investors crowd out sell‐side analysts? Evidence from China," The Financial Review, Eastern Finance Association, vol. 57(4), pages 815-834, November.

    More about this item

    Keywords

    Environmental information;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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