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Environmental regulation penalties and corporate environmental information disclosure

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  • Hu, Bin
  • Xu, Qian

Abstract

Promoting corporate environmental information disclosure has become a critical component in advancing green transformation and achieving high-quality development. This study, based on data from A-share listed enterprises in China from 2009 to 2023, systematically investigates the policy impact of environmental regulation penalties on corporate environmental disclosure practices. The findings reveal that environmental regulation penalties significantly enhance the level of environmental information disclosure. Moreover, corporate ESG performance plays a positive mediating role between regulatory penalties and disclosure behaviors, suggesting that enterprises respond to regulatory pressure by improving their environmental, social, and governance practices. Green technological innovation also serves as a crucial channel through which environmental penalties influence disclosure, reflecting an increased willingness to disclose driven by innovation-oriented transformation. Heterogeneity analysis further indicates that the effect is more pronounced among firms with low goodwill, enterprises in heavily polluting industries, and those located in regions with high public environmental concern.

Suggested Citation

  • Hu, Bin & Xu, Qian, 2025. "Environmental regulation penalties and corporate environmental information disclosure," International Review of Economics & Finance, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:reveco:v:102:y:2025:i:c:s1059056025005076
    DOI: 10.1016/j.iref.2025.104344
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    References listed on IDEAS

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    6. Li, Qian & Cai, Yunchao & Qiao, Yajie & Tan, Haili, 2025. "Dual environmental regulation and corporate green transformation: How does digital leadership affect transformation effectiveness?," Finance Research Letters, Elsevier, vol. 86(PD).
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    9. Ye Tian, 2026. "Green innovation through government-bank-enterprise collaboration: perspective of evolutionary game with randomly disturbance," Operational Research, Springer, vol. 26(1), pages 1-33, January.

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