IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v83y2025ics154461232500981x.html
   My bibliography  Save this article

Environmental policy orientation and corporate green transformation: A study based on information disclosure perspective

Author

Listed:
  • Zhang, Zhihe
  • Yu, Zaishui
  • Yao, Chengyu
  • Zhang, Zerui

Abstract

This research leverages China's 2018 Environmental Protection Tax Law enactment as a policy shock, applying a DID methodology to Chinese A-share listed firms' data to assess how environmental policy signals and disclosure practices drive sustainable corporate transitions. The results demonstrate that policy signals and disclosure requirements collectively accelerate firms' adoption of sustainable practices through enhanced regulatory pressures and transparency mechanisms. Notably, this promotional effect exhibits heterogeneity contingent upon variations in firms' environmental governance capabilities and ownership characteristics. Mechanism tests further demonstrate that climate risk and political embeddedness serve as crucial transmission channels.

Suggested Citation

  • Zhang, Zhihe & Yu, Zaishui & Yao, Chengyu & Zhang, Zerui, 2025. "Environmental policy orientation and corporate green transformation: A study based on information disclosure perspective," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s154461232500981x
    DOI: 10.1016/j.frl.2025.107723
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232500981X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107723?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.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

    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:finlet:v:83:y:2025:i:c:s154461232500981x. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: http://www.elsevier.com/locate/frl .

    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.