IDEAS home Printed from https://ideas.repec.org/a/eee/advacc/v69y2025ics0882611025000458.html

Green investors and corporate carbon disclosure

Author

Listed:
  • Ge, Yiyun
  • Zhang, Yi

Abstract

Corporate carbon disclosure plays a crucial role in addressing the environmental challenges driven by climate change. This research investigates the role of green investors in enhancing corporate carbon disclosure. Using a sample of Chinese listed firms from 2008 to 2022, our findings suggest that green investors enhance corporate carbon disclosure. These results remain robust across multiple sensitivity analyses and endogeneity checks, including the difference-in-differences estimation. Further tests show that green investors significantly enhance carbon disclosure primarily in firms led by non-green CEOs and with higher investors' exit threats. Moreover, the positive impact of green institutional investors on carbon disclosure is more pronounced in firms located in regions with lower public environmental concern, in firms facing more competition and, in more recent subsamples. This study provides empirical evidence that green investors play an essential role in promoting carbon disclosure levels.

Suggested Citation

  • Ge, Yiyun & Zhang, Yi, 2025. "Green investors and corporate carbon disclosure," Advances in accounting, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:advacc:v:69:y:2025:i:c:s0882611025000458
    DOI: 10.1016/j.adiac.2025.100850
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0882611025000458
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.adiac.2025.100850?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Cohen, Shira & Kadach, Igor & Ormazabal, Gaizka, 2023. "Institutional investors, climate disclosure, and carbon emissions," Journal of Accounting and Economics, Elsevier, vol. 76(2).
    2. Waris Ali & Jedrzej George Frynas & Zeeshan Mahmood, 2017. "Determinants of Corporate Social Responsibility (CSR) Disclosure in Developed and Developing Countries: A Literature Review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(4), pages 273-294, July.
    3. Lopin Kuo & Chin‐Chen Yeh & Hui‐Cheng Yu, 2012. "Disclosure of Corporate Social Responsibility and Environmental Management: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(5), pages 273-287, September.
    4. Shaojian Chen & Hui Mao & Junqin Sun, 2022. "Low-Carbon City Construction and Corporate Carbon Reduction Performance: Evidence From a Quasi-Natural Experiment in China," Journal of Business Ethics, Springer, vol. 180(1), pages 125-143, September.
    5. Su‐Yol Lee, 2012. "Corporate Carbon Strategies in Responding to Climate Change," Business Strategy and the Environment, Wiley Blackwell, vol. 21(1), pages 33-48, January.
    6. Alice Klettner & Thomas Clarke & Martijn Boersma, 2014. "The Governance of Corporate Sustainability: Empirical Insights into the Development, Leadership and Implementation of Responsible Business Strategy," Journal of Business Ethics, Springer, vol. 122(1), pages 145-165, June.
    7. Jean-Noël Chauvey & Sophie Giordano-Spring & Charles H. Cho & Dennis M. Patten, 2015. "The Normativity and Legitimacy of CSR Disclosure: Evidence from France," Post-Print hal-02009500, HAL.
    8. P. Fahad & P. Mubarak Rahman, 2020. "Impact of corporate governance on CSR disclosure," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 17(2), pages 155-167, September.
    9. Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(1), pages 25-46, January.
    10. Zhichuan Frank Li & Saurin Patel & Srikanth Ramani, 2021. "The Role of Mutual Funds in Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 174(3), pages 715-737, December.
    11. Jean-Noël Chauvey & Sophie Giordano-Spring & Charles Cho & Dennis Patten, 2015. "The Normativity and Legitimacy of CSR Disclosure: Evidence from France," Journal of Business Ethics, Springer, vol. 130(4), pages 789-803, September.
    12. Rajna Gibson Brandon & Simon Glossner & Philipp Krueger & Pedro Matos & Tom Steffen, 2022. "Do Responsible Investors Invest Responsibly? [Why and how investors use ESG information: evidence from a global survey]," Review of Finance, European Finance Association, vol. 26(6), pages 1389-1432.
    13. Allen, Franklin & Qian, Jun & Qian, Meijun, 2005. "Law, finance, and economic growth in China," Journal of Financial Economics, Elsevier, vol. 77(1), pages 57-116, July.
    14. Lily Hsueh, 2019. "Opening up the firm: What explains participation and effort in voluntary carbon disclosure by global businesses? An analysis of internal firm factors and dynamics," Business Strategy and the Environment, Wiley Blackwell, vol. 28(7), pages 1302-1322, November.
    15. Aymen Ajina & Faten Lakhal & Danielle Sougné, 2015. "Institutional investors, information asymmetry and stock market liquidity in France," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 11(1), pages 44-59, February.
    16. Hong, Harrison & Kostovetsky, Leonard, 2012. "Red and blue investing: Values and finance," Journal of Financial Economics, Elsevier, vol. 103(1), pages 1-19.
    17. Lin, Yongjia Rebecca & Fu, Xiaoqing Maggie, 2017. "Does institutional ownership influence firm performance? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 49(C), pages 17-57.
    18. Jonathan Lewellen & Katharina Lewellen, 2022. "Institutional Investors and Corporate Governance: The Incentive to Be Engaged," Journal of Finance, American Finance Association, vol. 77(1), pages 213-264, February.
    19. Fich, Eliezer M. & Harford, Jarrad & Tran, Anh L., 2015. "Motivated monitors: The importance of institutional investors׳ portfolio weights," Journal of Financial Economics, Elsevier, vol. 118(1), pages 21-48.
    20. Chi, Yi & Hu, Ning & Lu, Dong & Yang, Yang, 2023. "Green investment funds and corporate green innovation: From the logic of social value," Energy Economics, Elsevier, vol. 119(C).
    21. Aymen Ajina & Faten Lakhal & Danielle Sougné, 2015. "Institutional investors, information asymmetry and stock market liquidity in France," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 11(1), pages 44-59, February.
    22. Xin Li & Fei Guo & Jiaqi Wang, 2024. "A path towards enterprise environmental performance improvement: How does CEO green experience matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 820-838, February.
    23. Du Li, 2022. "Impact of Carbon Emission Policy on the Automotive Industry," Advances in Economics, Business and Management Research, in: Faruk Balli & Au Yong Hui Nee & Sikandar Ali Qalati (ed.), Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022), pages 19-28, Springer.
    24. Peter M. Clarkson & Michael B. Overell & Larelle Chapple, 2011. "Environmental Reporting and its Relation to Corporate Environmental Performance," Abacus, Accounting Foundation, University of Sydney, vol. 47(1), pages 27-60, March.
    25. Verrecchia, Robert E., 1990. "Endogenous proprietary costs through firm interdependence," Journal of Accounting and Economics, Elsevier, vol. 12(1-3), pages 245-250, January.
    26. Hutchinson, Marion & Seamer, Michael & Chapple, Larelle (Ellie), 2015. "Institutional Investors, Risk/Performance and Corporate Governance," The International Journal of Accounting, Elsevier, vol. 50(1), pages 31-52.
    27. Zhaoyang Zhao & Shuning Zhou & Siying Wang & Chong Ye & Tuolei Wu, 2022. "The Impact of Carbon Emissions Trading Pilot Policy on Industrial Structure Upgrading," Sustainability, MDPI, vol. 14(17), pages 1-25, August.
    28. Aymen Ajina & Faten Lakhal & Danielle Sougné, 2015. "Institutional investors, information asymmetry and stock market liquidity in France," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 11(1), pages 44-59, February.
    29. Dyck, Alexander & Lins, Karl V. & Roth, Lukas & Wagner, Hannes F., 2019. "Do institutional investors drive corporate social responsibility? International evidence," Journal of Financial Economics, Elsevier, vol. 131(3), pages 693-714.
    30. Thomas P. Lyon & John W. Maxwell, 2011. "Greenwash: Corporate Environmental Disclosure under Threat of Audit," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(1), pages 3-41, March.
    31. Yiwei Dou & Ole‐Kristian Hope & Wayne B. Thomas & Youli Zou, 2018. "Blockholder Exit Threats and Financial Reporting Quality," Contemporary Accounting Research, John Wiley & Sons, vol. 35(2), pages 1004-1028, June.
    32. Zahra Borghei, 2021. "Carbon disclosure: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5255-5280, December.
    33. Kenneth G. Elzinga & David E. Mills, 2011. "The Lerner Index of Monopoly Power: Origins and Uses," American Economic Review, American Economic Association, vol. 101(3), pages 558-564, May.
    34. Barnea, Amir & Heinkel, Robert & Kraus, Alan, 2005. "Green investors and corporate investment," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 332-346, September.
    35. Patrick Velte, 2023. "Which institutional investors drive corporate sustainability? A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 42-71, January.
    36. Wang, Fangjun & Sun, Junqin & Liu, Yang Stephanie, 2019. "Institutional pressure, ultimate ownership, and corporate carbon reduction engagement: Evidence from China," Journal of Business Research, Elsevier, vol. 104(C), pages 14-26.
    37. Nofsinger, John R. & Sulaeman, Johan & Varma, Abhishek, 2019. "Institutional investors and corporate social responsibility," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 700-725.
    38. Xiaojian Xiang & Chuanjiang Liu & Mian Yang & Xiaomeng Zhao, 2020. "Confession or justification: The effects of environmental disclosure on corporate green innovation in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2735-2750, November.
    39. Yongjun Tang & Jun Zhu & Wenchao Ma & Mengxue Zhao, 2022. "A Study on the Impact of Institutional Pressure on Carbon Information Disclosure: The Mediating Effect of Enterprise Peer Influence," IJERPH, MDPI, vol. 19(7), pages 1-23, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Maotao & Fang, Xubing, 2025. "How does green investor entry affect corporate carbon performance? Evidence from China," Renewable Energy, Elsevier, vol. 244(C).
    2. Li, Suyang & Qiao, Lu & Ren, Boru & Wang, Zilong, 2025. "Financing sustainability: Sustainable institutional investors and bank loan access," Journal of International Money and Finance, Elsevier, vol. 157(C).
    3. Daniele Giordino & Elisa Ballesio & Aradhana Galgotia & Laura Broccardo, 2025. "Does Institutional Ownership Structure Reduce Greenhouse Gas Emissions? An In‐Depth Study of Corporations Social Responsibility of European‐Listed Firms," Post-Print hal-05350978, HAL.
    4. Zhang, Ping & Ma, Binbin & Chi, Chuenyu, 2025. "Institutional investors and ESG performance: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1159-1181.
    5. Sirin, Selahattin Murat & Yilmaz, Berna N., 2025. "Tech firms and the renewable energy sector: Exploring the moderating effects of institutional ownership on financial connectedness," Research in International Business and Finance, Elsevier, vol. 80(C).
    6. Samuel B. Bonsall IV & Babak Mammadov & Blerina Bela Zykaj, 2025. "Institutional Investors with Disciplinary History and CSR Behavior of Investee Firms," Journal of Business Ethics, Springer, vol. 200(4), pages 813-840, September.
    7. Amin, Abu & Hossain, Md Miran & Lee, Narae & Saadi, Samir, 2025. "Corporate political activities and firms' carbon emissions," Journal of Corporate Finance, Elsevier, vol. 95(C).
    8. Böhm, Adrian & Eufinger, Christian & Kadach, Igor & Sakasai, Yuki, 2025. "Green banking illusion? The influence of “Eco-Conscious” bank shareholders on credit allocation," Journal of Corporate Finance, Elsevier, vol. 92(C).
    9. Fan Xia & Jiaying Chen & Xue Yang & Xiaoliang Li & Bing Zhang, 2023. "Financial constraints and corporate greenwashing strategies in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1770-1781, July.
    10. Weian Li & Yupei Liu & Lixiang Wang, 2024. "Moral mentor of the company? Multifaceted influence of sustainable and responsible funds on corporate social responsibility disclosure in China," Asia Pacific Journal of Management, Springer, vol. 41(4), pages 2213-2249, December.
    11. Yu, Hongcui & Zhang, Jinsong, 2025. "Do green investors empower companies to develop sustainably? A study based on the perspective of innovation investment and corporate governance levels," Finance Research Letters, Elsevier, vol. 79(C).
    12. Qiu, Wenkang & Xiang, Cheng & Li, Chunhong & Chen, Yinong, 2025. "Institutional investor cliques and ESG performance: Evidence from Chinese firms," International Review of Economics & Finance, Elsevier, vol. 100(C).
    13. Pastor, Lubos & Stambaugh, Robert F. & Taylor, Lucian A., 2025. "Green tilts," Journal of Financial Economics, Elsevier, vol. 174(C).
    14. Wang, Yueyang, 2025. "The silent cost of biodiversity loss: Unveiling its impact on institutional ownership," International Review of Financial Analysis, Elsevier, vol. 103(C).
    15. Wu, Qinqin & Xie, Tingting & Lu, Jing, 2025. "Does institutional investors’ environmental attention influence corporate environmental investment?," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1625-1644.
    16. Yang, Ge & Tan, Zelong & Zhao, Yiyi, 2026. "Green funds and green innovation in family firms: A perspective of long-term value congruence," Research in International Business and Finance, Elsevier, vol. 81(C).
    17. Shujun Chao & Shanyong Wang & Haidong Li & Shu Yang, 2023. "The power of culture: Does Confucian culture contribute to corporate environmental information disclosure?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2435-2456, September.
    18. Cao, Dongxin, 2025. "The impact of green investor entry into buyer firms on supplier green innovation," International Review of Economics & Finance, Elsevier, vol. 103(C).
    19. Charles H. Cho & Jonathan Maurice & Emmanuelle Nègre & Marie-Anne Verdier, 2016. "Is environmental disclosure good for the environment? A meta-analysis and research agenda," Post-Print halshs-01369422, HAL.
    20. Anna Che Azmi, 2025. "Corporate carbon disclosure indicators: a systematic literature review," GATR Journals afr241, Global Academy of Training and Research (GATR) Enterprise.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:advacc:v:69:y:2025:i:c:s0882611025000458. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/advances-in-accounting/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.