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The Impact of Environmental Information Disclosure on the Firm Value of Listed Manufacturing Firms: Evidence from China

Author

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  • Yongliang Yang

    (School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China)

  • Jin Wen

    (School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China)

  • Yi Li

    (Faculty of Tourism and Culture, International United Faculty between Ningbo University and University of Angers, Ningbo University, Ningbo 315201, China
    East China Sea Institute, Ningbo University, Ningbo 315211, Zhejiang, China
    Center for Ecological Civilization of Yangtze River Delta, Ningbo University, Ningbo 315211, China)

Abstract

In the last decade, the public concern over environmental problems has led to the emergence of environmental regulations in firms’ information disclosure on environmental practice, especially in some developing countries such as China. Based on a panel dataset composed of the listed manufacturing firms in China during 2006–2016, this paper uses the difference-in-differences (DID) model and the propensity score matching (PSM) method to investigate whether the Environmental Information Disclosure Measure (for Trial Implementation; EIDMT) affects the firm value. The results show that EIDMT exerts a significant impact on the listed manufacturing firms’ value. In consideration of the firm’s ownership, EIDMT plays a more important role in the firm value of non-state-owned firms than state-owned firms. Furthermore, using a PSM–DID model for eastern, central, and western China, we find that EIDMT significantly affects the firm value in eastern and western China but has little impact on central China.

Suggested Citation

  • Yongliang Yang & Jin Wen & Yi Li, 2020. "The Impact of Environmental Information Disclosure on the Firm Value of Listed Manufacturing Firms: Evidence from China," IJERPH, MDPI, vol. 17(3), pages 1-20, February.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:3:p:916-:d:315441
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    References listed on IDEAS

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    3. Lu, Yuchen & Gao, Yuqiang & Zhang, Yu & Wang, Junrong, 2022. "Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”," Energy Economics, Elsevier, vol. 114(C).

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