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Firm Visibility and Voluntary Environmental Behavior: Evidence from Hydraulic Fracturing

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  • Zhongmin Wang

Abstract

Larger firms are often found to be more likely to participate in voluntary environmental programs, but few studies have investigated the mechanism through which firm size matters. This paper studies oil and gas firms’ likelihood of voluntarily disclosing information on hydraulic fracturing, an industrial process that involves the use of toxic chemicals. I find evidence that firm visibility is an important mechanism through which firm size affects the voluntary disclosure rate. My findings suggest that voluntary approaches to environmental protection are unlikely to be effective if many targeted firms are small and not visible to the public.

Suggested Citation

  • Zhongmin Wang, 2017. "Firm Visibility and Voluntary Environmental Behavior: Evidence from Hydraulic Fracturing," Land Economics, University of Wisconsin Press, vol. 93(4), pages 654-666.
    • Handle: RePEc:uwp:landec:v:93:y:2017:i:4:p:654-666
    Note: DOI: 10.3368/le.93.4.654
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    File URL: http://le.uwpress.org/cgi/reprint/93/4/654
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    Cited by:

    1. Omaima A.G. Hassan, 2018. "The impact of voluntary environmental disclosure on firm value: Does organizational visibility play a mediation role?," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1569-1582, December.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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