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Does environmental information disclosure regulation improve environmental governance? Evidence from China

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  • Cheng, Bo
  • Mao, Xinyang

Abstract

This study examines the effectiveness of Chinese environmental information disclosure (EID) regulations. We find that EID regulations improve firms' EID quality (i.e., exist information effect) and foster firms' green behavior (i.e., exist green effect). Mechanism analysis shows that due to lower audit risks, heavy-polluting firms are charged lower audit fees after the implementation of EID regulations; and due to less managerial myopia, heavy-polluting firms significantly increase green investment and green innovation following EID regulations. Additional heterogeneity analysis shows that these information and green effects can be strengthened by institutional environment factors, such as media coverage, audit quality and political cost.

Suggested Citation

  • Cheng, Bo & Mao, Xinyang, 2024. "Does environmental information disclosure regulation improve environmental governance? Evidence from China," Emerging Markets Review, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:ememar:v:63:y:2024:i:c:s1566014124000918
    DOI: 10.1016/j.ememar.2024.101196
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    More about this item

    Keywords

    Environmental information disclosure; Information effect; Green effect;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment

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