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Environmental information disclosure and corporate financial performance: Evidence from China

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  • Xinyue Fan
  • Zishen Tang
  • Yelin Fu
  • Jiayi Yan

Abstract

Corporate environmental disclosure has gained prominence in capital markets, yet opinions vary on whether its benefits outweigh its costs. Based on a sample of Chinese listed A‐share firms spanning 2010–2020, we reveal that the environmental information disclosed by listed companies significantly enhances the economic value added. Key mechanisms include positive media attention, institutional investor shareholding and corporate R&D investment. Additionally, government investment in environmental governance plays a positive moderating role. Furthermore, we also find that non‐monetised disclosures bring more benefits than monetised ones. Also green signals have a peer effect in the same industry and province.

Suggested Citation

  • Xinyue Fan & Zishen Tang & Yelin Fu & Jiayi Yan, 2024. "Environmental information disclosure and corporate financial performance: Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(S1), pages 5039-5068, December.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:s1:p:5039-5068
    DOI: 10.1111/acfi.13327
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    References listed on IDEAS

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    2. Wang, Haoyu & Lyu, Kefu, 2025. "Environmental tone and carbon market behavior: Understanding market dynamics through corporate environmental attitudes in China," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 792-813.

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