Business Strategy and Environmental Information Disclosure Quality: Empirical Evidence from Chinese Heavy Pollution Listed Firms

Abstract

Using the data of listed firms in China’s A-share heavy pollution industry between 2008 and 2020, based on organizational theory, this study examines the impact of prospector-type firms and defender-type firms on environmental information disclosure quality. Empirical evidence shows that prospector-type firms reduce environmental information disclosure quality, compared with defender-type firms. After a series of robustness tests, the conclusion is still valid. This paper tests the impact mechanism of business strategy on environmental information disclosure quality and finds that financing constraints play a mediating effect in the relationship between business strategy and environmental information disclosure quality. This paper enriches and expands the literature in the field of influencing factors of environmental information disclosure quality and economic consequences of business strategy. At the same time, the conclusion of this paper has important reference significance for regulators to formulate policies to improve environmental information disclosure quality according to the heterogeneity of business strategy.

Environmental Information Disclosure, Digital Transformation, and Total Factor Productivity: Evidence from Chinese Heavy Polluting Listed Companies

“…Regarding EID, most current studies use information from annual reports, environmental information reports, and social responsibility reports. Drawing from existing research, the EID level was classified into five primary indicators; namely, environmental management, environmental regulation and certification, environmental information disclosure vehicles, environmental liabilities, environmental performance and governance, and 30 subdivision indicators [ 42 ]. Specific descriptions of the metrics of EID are shown in Appendix A Table A1 .…”

Tracking Waste Management Information Disclosure Behavior Connected to Financial Performance through Moderating Variables

“…The waste component is very important in the environmental dimension of sustainability, just as the environmental dimension is an essential component of corporate social responsibility [ 13 ] because it concerns the impact of companies on living and non-living natural systems, water, land, air, and ecosystems [ 12 ]. Most research has considered environmental aspects [ 1 , 5 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 ], but few have focused their attention on waste [ 4 , 27 , 28 ].…”

“…Li et al [ 1 ] in a study conducted on Chinese listed companies from the heavy pollution industry aimed to identify the factors that influence the quality of environmental information disclosure from the perspective of business strategy. They discover that, unlike defender-type firms, prospector-type firms reduce environmental information disclosure quality, and financing constraints mediate between corporate strategy and environmental information disclosure quality.…”

“…The more that the accumulation of waste is reduced and waste is properly managed, the more the development of diseases and possible outbreaks of infections will be prevented, which will contribute to the health and well-being of people. The problem of efficient waste management is a concern at the level of company management forums because the topic of pollution and the effect of global warming on human health [ 1 ] resonates worldwide. Being energy consumers and participants in pollution, companies must strengthen their environmental management and information disclosure policies [ 2 ].…”

How Does an Environmental Information Disclosure of a Buyer’s Enterprise Affect Green Technological Innovations of Sellers’ Enterprise?

“…Corporate environmental information disclosure can have different economic consequences, and relevant studies have focused on the effects of environmental information disclosure on corporate value, environmental performance, and stakeholders. By improving the level of environmental information disclosure, companies can demonstrate their effective environmental risk management capabilities and corporate development prospects, can promote their environmental performance, enhance investor confidence [ 22 ], help companies increase their share prices in the short term [ 23 ], and increase corporate value by reducing equity capital and increasing expected cash flows [ 24 ]. Environmental information disclosure shows that companies actively fulfill their environmental responsibilities and that there are spillover effects of environmental responsibility that can cross corporate boundaries and have an impact on other companies [ 25 ].…”