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The effect of environmental information disclosure on environmental rating divergence

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  • Deng, Jianping
  • Chen, Han
  • Bai, Yuxin

Abstract

This study examine the relationship between environmental information disclosure and environmental rating divergence by empirically analyzing China's A-share listed companies from 2011 to 2020. The findings reveal a positive correlation between environmental information disclosure and rating divergence. When regulatory authorities tighten the norms for environmental information disclosure, the impact of corporate environmental disclosure on rating divergence is significantly reduced. Heterogeneity analyses indicate that the variations in environmental information disclosure are less pronounced among large-scale firms and state-owned enterprises. Additionally, audits conducted by the Big Four and the professional board contribute to mitigating the divergence in environmental information disclosure.

Suggested Citation

  • Deng, Jianping & Chen, Han & Bai, Yuxin, 2025. "The effect of environmental information disclosure on environmental rating divergence," Finance Research Letters, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324013801
    DOI: 10.1016/j.frl.2024.106351
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    References listed on IDEAS

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