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Do negative environmental media reports increase environmental information disclosures? A comparative analysis based on political connections and market competition

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  • Xuan Chen
  • Liang Zhang

Abstract

Heavily polluting companies listed in Shanghai and Shenzhen are used as the sample, and the difference in difference method is applied to analyze how different companies make environmental information disclosure (EID) decisions following negative environmental media reports. The results indicate that the media's supervisory effects are limited, and political connections do not significantly change EID decisions. However, in‐depth media reports and high‐frequency reports can selectively improve EID when companies are exposed to strongly competitive markets. Further, high‐level political connections increase enthusiasm for EID in strongly competitive markets. In contrast, weak competitive markets have the opposite effect.

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  • Xuan Chen & Liang Zhang, 2022. "Do negative environmental media reports increase environmental information disclosures? A comparative analysis based on political connections and market competition," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2480-2500, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2480-2500
    DOI: 10.1002/mde.3539
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    1. Haowei Yu & Ruoyu Wang & Ling‐Yun He, 2023. "Environmental implications of political connections and state ownership: Theory and evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1228-1253, March.
    2. Qingyuan Yang & Shaorong Xu, 2022. "The Relationship between the Political Connections and Green Innovation Development of Chinese Enterprises—Empirical Analysis Based on Panel Data of Chinese A-Share Listed Companies," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    3. Fengyan Wang & Ziyuan Sun & Hua Feng, 2022. "Can Media Attention Promote Green Innovation of Chinese Enterprises? Regulatory Effect of Environmental Regulation and Green Finance," Sustainability, MDPI, vol. 14(17), pages 1-25, September.
    4. Changchun Zhu & Na Li & Jing Ma, 2023. "Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2885-2905, November.

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