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Can environmental disclosure improve price efficiency? The perspective of price delay

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  • Zhang, Jitao
  • Yang, Yongliang

Abstract

Environmental information disclosure transmits corporate information to the capital market, improves information transparency, and reduces price delays caused by information asymmetry. Using the data from Chinese listed companies from 2008 to 2020, we examine the impact of environmental information disclosure on price delay through the instrumental variable method. We find that (1) environmental disclosures can significantly reduce corporate price delays. (2) This relationship is more pronounced in companies with high individual ownership, low institutional ownership and a preference for voluntary and soft disclosures. (3) Environmental information disclosure can reduce corporate price delays by improving information transparency.

Suggested Citation

  • Zhang, Jitao & Yang, Yongliang, 2023. "Can environmental disclosure improve price efficiency? The perspective of price delay," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007322
    DOI: 10.1016/j.frl.2022.103556
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    2. Weizhou Su & Nieping Wei & Zihan Yuan & Sidai Guo, 2023. "The Impact of Environmental Information Disclosure on the Efficiency of Enterprise Capital Allocation," Sustainability, MDPI, vol. 15(14), pages 1-19, July.

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