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Can corporate site visits by institutional investors improve the quality of corporate environmental information disclosure? Evidence from China

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  • Feng, Chao
  • Cheng, Xi
  • Luo, Jiaxing
  • Zheng, Hao
  • Wang, Miao

Abstract

With global environmental challenges intensifying, the environmental impact of economic activities has garnered widespread societal attention, heightening stakeholder concerns about the transparency and quality of corporate environmental information. This study examines the influence of institutional investors' corporate site visits on the quality of corporate environmental information disclosure, using a sample of 2264 A-share companies listed on the Shenzhen Stock Exchange from 2013 to 2022. The findings reveal that (1) institutional investors' site visits contribute to improving the quality of corporate environmental information disclosure. (2) Economic policy uncertainty amplifies this positive impact, but environmental regulations weaken this effect. (3) Media attention plays a crucial mediating role in this relationship. (4) The visits enhance the quality of monetary environmental disclosure more significantly than non-monetary disclosure. (5) The impact is more pronounced in non-state-owned enterprises, small- and medium-sized firms, and companies with low equity concentration. These findings offer valuable insights for governments, businesses, and institutional investors seeking to promote and support sustainable development.

Suggested Citation

  • Feng, Chao & Cheng, Xi & Luo, Jiaxing & Zheng, Hao & Wang, Miao, 2025. "Can corporate site visits by institutional investors improve the quality of corporate environmental information disclosure? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:finana:v:102:y:2025:i:c:s105752192500225x
    DOI: 10.1016/j.irfa.2025.104138
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