IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i19p11064-d651060.html
   My bibliography  Save this article

Does Environmental Information Disclosure Affect the Sustainable Development of Enterprises: The Role of Green Innovation

Author

Listed:
  • Dameng Hu

    (School of Business, Ningbo University, Ningbo 315211, China)

  • Yuanzhe Huang

    (School of Business, Ningbo University, Ningbo 315211, China)

  • Changbiao Zhong

    (School of Business, Ningbo University, Ningbo 315211, China)

Abstract

Along with command-and-control and market-incentive environmental regulation policies, environmental information disclosure (EID) is an important measure used by the Chinese government to implement environmental governance. In the context of advocating for corporate sustainable development and green governance, this study uses data from China’s Shanghai and Shenzhen A-share listed companies in heavily polluting industries spanning 2008–2019 to empirically explore the relationship between corporate EID and green innovation (GI). The results reveal the following: (1) high-quality EID significantly promotes the absolute GI level and the relative GI level of enterprises. (2) An intermediary model found that the internal mechanism of corporate EID used to promote GI mainly comes from the government’s energy-saving innovation subsidy effect and the social media attention effect. (3) Corporate EID has a more evident promotional effect on green patents for energy conservation and green patents for inventions. (4) The EID of state-owned enterprises is more conducive to GI than to the activities of private enterprises. (5) The EID of enterprises in high-level administrative cities has no significant impact on GI. However, it has a significant promoting effect in low-level administrative cities. The research not only provides an empirical basis for China to improve the environmental information disclosure system of listed companies but also to offer guidance for companies to pursue green and sustainable development.

Suggested Citation

  • Dameng Hu & Yuanzhe Huang & Changbiao Zhong, 2021. "Does Environmental Information Disclosure Affect the Sustainable Development of Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 13(19), pages 1-22, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:11064-:d:651060
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/19/11064/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/19/11064/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alfred Endres & Tim Friehe & Bianca Rundshagen, 2015. "Environmental liability law and R&D subsidies: results on the screening of firms and the use of uniform policy," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(4), pages 521-541, October.
    2. Muhammad Umar & Xiangfeng Ji & Dervis Kirikkaleli & Muhammad Shahbaz & Xuemei Zhou, 2020. "Environmental cost of natural resources utilization and economic growth: Can China shift some burden through globalization for sustainable development?," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1678-1688, November.
    3. Ioannis Ioannou & George Serafeim, 2012. "What drives corporate social performance? The role of nation-level institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(9), pages 834-864, December.
    4. Stiglitz, Joseph E., 2015. "Leaders and followers: Perspectives on the Nordic model and the economics of innovation," Journal of Public Economics, Elsevier, vol. 127(C), pages 3-16.
    5. Qu, Shen & Wang, Hongxia & Liang, Sai & Shapiro, Avi M. & Suh, Sanwong & Sheldon, Seth & Zik, Ory & Fang, Hong & Xu, Ming, 2017. "A Quasi-Input-Output model to improve the estimation of emission factors for purchased electricity from interconnected grids," Applied Energy, Elsevier, vol. 200(C), pages 249-259.
    6. Tomiwa Sunday Adebayo & Dervis Kirikkaleli, 2021. "Impact of renewable energy consumption, globalization, and technological innovation on environmental degradation in Japan: application of wavelet tools," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16057-16082, November.
    7. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    8. Popp, David, 2006. "International innovation and diffusion of air pollution control technologies: the effects of NOX and SO2 regulation in the US, Japan, and Germany," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 46-71, January.
    9. Montmartin, Benjamin & Herrera, Marcos, 2015. "Internal and external effects of R&D subsidies and fiscal incentives: Empirical evidence using spatial dynamic panel models," Research Policy, Elsevier, vol. 44(5), pages 1065-1079.
    10. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September.
    11. Wenhao Song & Hongyan Yu, 2018. "Green Innovation Strategy and Green Innovation: The Roles of Green Creativity and Green Organizational Identity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(2), pages 135-150, March.
    12. Jacoby, Gady & Liu, Mingzhi & Wang, Yefeng & Wu, Zhenyu & Zhang, Ying, 2019. "Corporate governance, external control, and environmental information transparency: Evidence from emerging markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 58(C), pages 269-283.
    13. Michael Minnis, 2011. "The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. Firms," Journal of Accounting Research, Wiley Blackwell, vol. 49(2), pages 457-506, May.
    14. S. Zeng & X. Xu & H. Yin & C. Tam, 2012. "Factors that Drive Chinese Listed Companies in Voluntary Disclosure of Environmental Information," Journal of Business Ethics, Springer, vol. 109(3), pages 309-321, September.
    15. Daron Acemoglu, 2002. "Directed Technical Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 781-809.
    16. Geng, Yong & Liu, Wei & Li, Kai & Chen, Hanshu, 2021. "Environmental regulation and corporate tax avoidance: A quasi-natural experiment based on the eleventh Five-Year Plan in China," Energy Economics, Elsevier, vol. 99(C).
    17. Tan, Yongxian & Tian, Xuan & Zhang, Xinde & Zhao, Hailong, 2020. "The real effect of partial privatization on corporate innovation: Evidence from China's split share structure reform," Journal of Corporate Finance, Elsevier, vol. 64(C).
    18. Cenjie Liu & Chunbo Ma & Rui Xie, 2020. "Structural, Innovation and Efficiency Effects of Environmental Regulation: Evidence from China’s Carbon Emissions Trading Pilot," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 741-768, April.
    19. X. Meng & S. Zeng & C. Tam, 2013. "From Voluntarism to Regulation: A Study on Ownership, Economic Performance and Corporate Environmental Information Disclosure in China," Journal of Business Ethics, Springer, vol. 116(1), pages 217-232, August.
    20. Bulent Menguc & Seigyoung Auh & Lucie Ozanne, 2010. "The Interactive Effect of Internal and External Factors on a Proactive Environmental Strategy and its Influence on a Firm's Performance," Journal of Business Ethics, Springer, vol. 94(2), pages 279-298, June.
    21. Pittman, Jeffrey A. & Fortin, Steve, 2004. "Auditor choice and the cost of debt capital for newly public firms," Journal of Accounting and Economics, Elsevier, vol. 37(1), pages 113-136, February.
    22. Gray, Wayne B. & Shadbegian, Ronald J., 2003. "Plant vintage, technology, and environmental regulation," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 384-402, November.
    23. Evans, Mary F. & Gilpatric, Scott M. & Liu, Lirong, 2009. "Regulation with direct benefits of information disclosure and imperfect monitoring," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 284-292, May.
    24. Chang, Yingying & Du, Xingqiang & Zeng, Quan, 2021. "Does environmental information disclosure mitigate corporate risk? Evidence from China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(1).
    25. Thomas P. Lyon & John W. Maxwell, 2011. "Greenwash: Corporate Environmental Disclosure under Threat of Audit," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(1), pages 3-41, March.
    26. Lívia Maria da Silva Santos & Wenner Glaucio Lopes Lucena & Wesley Vieira da Silva & Tatiana Marceda Bach & Claudimar Pereira da Veiga, 2019. "Explanatory Factors of the Environmental Disclosure of Potentially Polluting Companies: Evidence From Brazil," SAGE Open, , vol. 9(1), pages 21582440198, February.
    27. Fonseka, Mohan & Rajapakse, Theja & Richardson, Grant, 2019. "The effect of environmental information disclosure and energy product type on the cost of debt: Evidence from energy firms in China," Pacific-Basin Finance Journal, Elsevier, vol. 54(C), pages 159-182.
    28. Mi, Zhifu & Zheng, Jiali & Meng, Jing & Zheng, Heran & Li, Xian & Coffman, D'Maris & Woltjer, Johan & Wang, Shouyang & Guan, Dabo, 2019. "Carbon emissions of cities from a consumption-based perspective," Applied Energy, Elsevier, vol. 235(C), pages 509-518.
    29. Bhandari, Avishek & Javakhadze, David, 2017. "Corporate social responsibility and capital allocation efficiency," Journal of Corporate Finance, Elsevier, vol. 43(C), pages 354-377.
    30. Yuan, Lin & Pangarkar, Nitin & Wu, Jie, 2016. "The interactive effect of time and host country location on Chinese MNCs’ performance: An empirical investigation," Journal of World Business, Elsevier, vol. 51(2), pages 331-342.
    31. Albrizio, Silvia & Kozluk, Tomasz & Zipperer, Vera, 2017. "Environmental policies and productivity growth: Evidence across industries and firms," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 209-226.
    32. Goss, Allen & Roberts, Gordon S., 2011. "The impact of corporate social responsibility on the cost of bank loans," Journal of Banking & Finance, Elsevier, vol. 35(7), pages 1794-1810, July.
    33. Dibrell, Clay & Craig, Justin B. & Hansen, Eric N., 2011. "How managerial attitudes toward the natural environment affect market orientation and innovation," Journal of Business Research, Elsevier, vol. 64(4), pages 401-407, April.
    34. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    35. Lindman, Åsa & Söderholm, Patrik, 2016. "Wind energy and green economy in Europe: Measuring policy-induced innovation using patent data," Applied Energy, Elsevier, vol. 179(C), pages 1351-1359.
    36. Sendhil Mullainathan & Andrei Shleifer, 2005. "The Market for News," American Economic Review, American Economic Association, vol. 95(4), pages 1031-1053, September.
    37. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    38. Barbera, Anthony J. & McConnell, Virginia D., 1990. "The impact of environmental regulations on industry productivity: Direct and indirect effects," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 50-65, January.
    39. Nooraisah Katmon & Zam Zuriyati Mohamad & Norlia Mat Norwani & Omar Al Farooque, 2019. "Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market," Journal of Business Ethics, Springer, vol. 157(2), pages 447-481, June.
    40. Beck, A. Cornelia & Campbell, David & Shrives, Philip J., 2010. "Content analysis in environmental reporting research: Enrichment and rehearsal of the method in a British–German context," The British Accounting Review, Elsevier, vol. 42(3), pages 207-222.
    41. Yi Yang & Congxu Yao & Ying Li, 2020. "The impact of the amount of environmental information disclosure on financial performance: The moderating effect of corporate internationalization," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2893-2907, November.
    42. Rosemarie Ham Ziedonis, 2004. "Don't Fence Me In: Fragmented Markets for Technology and the Patent Acquisition Strategies of Firms," Management Science, INFORMS, vol. 50(6), pages 804-820, June.
    43. DeShazo, J.R. & Sheldon, Tamara L. & Carson, Richard T., 2017. "Designing policy incentives for cleaner technologies: Lessons from California's plug-in electric vehicle rebate program," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 18-43.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Weize Sun & Mingtao Yu & Haotian Zhang & Yifan Zhang, 2022. "Does Uncertainty of Trade Environment Promote Green Technological Innovation? Empirical Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    2. Qunpeng Fan & Dongphil Chun & Qi Ban & Yitong Jiang & Huiting Li & Luyuan Xu, 2023. "Mandatory Disclosure of Corporate Social Responsibility and the Quality of Earnings Management," Sustainability, MDPI, vol. 15(17), pages 1-20, August.
    3. Liping Wang & Yuqi Shang & Shuqin Li & Chuang Li, 2023. "Environmental Information Disclosure-Environmental Costs Nexus: Evidence from Heavy Pollution Industry in China," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    4. Dameng Hu & Changbiao Zhong & Haoran Ge & Yawen Zou & Chong Li, 2022. "How Regional High-Quality Co-Ordinated Development Influences Green Technology Choices: Evidence from 284 Cities in China," Land, MDPI, vol. 11(7), pages 1-22, July.
    5. Shiliang Hu & Wenhao Dong & Yongchun Huang, 2023. "Analysts’ Green Coverage and Corporate Green Innovation in China: The Moderating Effect of Corporate Environmental Information Disclosure," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    6. Qi Ban & Huiting Zhu, 2023. "Quality of Mandatory Social Responsibility Disclosure and Total Factor Productivity of Enterprises: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    7. Chih-Hsing Liu & Quoc Phong La & Yen-Ling Ng & Rullyana Puspitaningrum Mamengko, 2023. "Discovering the Sustainable Innovation Service Process of Organizational Environment, Information Sharing and Satisfaction: The Moderating Roles of Pressure," Sustainability, MDPI, vol. 15(14), pages 1-26, July.
    8. Maoli Ji & Yuguang Ji & Shulan Dong, 2022. "Environmental Accounting Information Disclosure Driving Factors: The Case of Listed Firms in China," Sustainability, MDPI, vol. 14(23), pages 1-23, November.
    9. Shanshan Gao & Wenqi Li & Jiayi Meng & Jianfeng Shi & Jianhua Zhu, 2023. "A Study on the Impact Mechanism of Digitalization on Corporate Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    10. Qi Ban, 2022. "The Quality of Corporate Social Responsibility Information Disclosure and Enterprise Innovation: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(1), pages 1-22, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dameng Hu & Changbiao Zhong & Haoran Ge & Yawen Zou & Chong Li, 2022. "How Regional High-Quality Co-Ordinated Development Influences Green Technology Choices: Evidence from 284 Cities in China," Land, MDPI, vol. 11(7), pages 1-22, July.
    2. Ge Wang & Huijin Zhang & Saixing Zeng & Xiaohua Meng & Han Lin, 2023. "Reporting on sustainable development: Configurational effects of top management team and corporate characteristics on environmental information disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 28-52, January.
    3. Huang, Hongyun & Mbanyele, William & Wang, Fengrong & Song, Malin & Wang, Yuzhang, 2022. "Climbing the quality ladder of green innovation: Does green finance matter?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    4. Qi Ban, 2022. "The Quality of Corporate Social Responsibility Information Disclosure and Enterprise Innovation: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(1), pages 1-22, December.
    5. Xiaojian Xiang & Chuanjiang Liu & Mian Yang & Xiaomeng Zhao, 2020. "Confession or justification: The effects of environmental disclosure on corporate green innovation in China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2735-2750, November.
    6. Jing‐Yue Liu & Yue‐Jun Zhang & Charles H. Cho, 2023. "Corporate environmental information disclosure and green innovation: The moderating effect of CEO visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3020-3042, November.
    7. Nelson, Kelly P. & Parton, Lee C. & Brown, Zachary S., 2022. "Biofuels policy and innovation impacts: Evidence from biofuels and agricultural patent indicators," Energy Policy, Elsevier, vol. 162(C).
    8. Siedschlag, Iulia & Yan, Weijie, 2023. "Do green investments improve firm performance? Empirical evidence from Ireland," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    9. Xiaopeng Wang & Xueyao Shen & Yongliang Yang, 2020. "Does Environmental Information Disclosure Make Firms’ Investments More Efficient? Evidence from Measure 2007 of Chinese A-Listed Companies," Sustainability, MDPI, vol. 12(5), pages 1-16, March.
    10. Fang, Zhenming & Kong, Xiaoran & Sensoy, Ahmet & Cui, Xin & Cheng, Feiyang, 2021. "Government’s awareness of Environmental protection and corporate green innovation: A natural experiment from the new environmental protection law in China," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 294-312.
    11. Xiaohua Meng & Saixing Zeng & Xuemei Xie & Hailiang Zou, 2019. "Beyond symbolic and substantive: Strategic disclosure of corporate environmental information in China," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 403-417, February.
    12. Zhang, Cheng & Zhou, Bo, 2023. "Where should the money go? The green effect of governmental guidance when sustainable finance impacts brown firms," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    13. Shiliang Hu & Wenhao Dong & Yongchun Huang, 2023. "Analysts’ Green Coverage and Corporate Green Innovation in China: The Moderating Effect of Corporate Environmental Information Disclosure," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    14. Herman, Kyle S. & Xiang, Jun, 2019. "Induced innovation in clean energy technologies from foreign environmental policy stringency?," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 198-207.
    15. Zhiying Ji & Xiao Yu & Jiefei Yang, 2020. "Environmental information disclosure in capital raising," Australian Economic Papers, Wiley Blackwell, vol. 59(3), pages 183-214, September.
    16. Mian Yang & Yining Yuan & Fuxia Yang & Dalia Patino-Echeverri, 2021. "Effects of environmental regulation on firm entry and exit and China’s industrial productivity: a new perspective on the Porter Hypothesis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 915-944, October.
    17. Liu, Xinghe & Xu, Huifeng & Lu, Meiting, 2021. "Do auditors respond to stringent environmental regulation? Evidence from China’s new environmental protection law," Economic Modelling, Elsevier, vol. 96(C), pages 54-67.
    18. Eliwa, Yasser & Aboud, Ahmed & Saleh, Ahmed, 2021. "ESG practices and the cost of debt: Evidence from EU countries," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 79(C).
    19. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    20. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).

    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:gam:jsusta:v:13:y:2021:i:19:p:11064-:d:651060. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.