The Impact Mechanism of Environmental Information Disclosure on Corporate Sustainability Performance—Micro-Evidence from China

Abstract

As an effective regulatory tool, environmental information disclosure is significant in promoting the green upgrading of industrial structures and achieving green transformation of enterprises. In order to explore the impact mechanism of environmental information disclosure on corporate sustainability performance, this paper constructs a two-way fixed-effect model using balanced panel data of Chinese A-share listed manufacturing companies from 2015 to 2020. We find that environmental information disclosure significantly impacts green innovation, thereby improving corporate sustainability performance. Furthermore, financing constraints inhibit the impact of environmental disclosure on sustainability performance, while female directors have only symbolic effect. The reliability of the paper’s findings is verified by replacing the dependent variable and introducing instrumental variables. Heterogeneity analysis shows that the effect of environmental information disclosure on corporate sustainability performance is more substantial among non-state and eastern and heavily polluting enterprises. Comprehensive analysis from the financing perspective shows the differences in the moderating effects of debt and equity financing regarding the impact mechanism. This study enriches the theory of green innovation and provides financing strategies for enterprises to achieve green transformation, as well as suggestions for improving the government environmental information disclosure system.

The Impact Mechanism of Green Credit Policy on the Sustainability Performance of Heavily Polluting Enterprises—Based on the Perspectives of Technological Innovation Level and Credit Resource Allocation

“…Moreover, as a type of environmental regulation, GCP indeed significantly increases TIL, which is consistent with the results of Wang et al [ 61 ], thereby improving CSP through the innovation compensation effect. This paper not only verifies that CRA mediates the relationship between GCP and CSP, but also proves that a strong version of the ‘Porter effect’ is applicable to Chinese manufacturing companies [ 62 ].…”

“…In addition, financial institutions should strengthen information exchange with environmental departments, complete the information flow mechanism, and strengthen the guiding role of GCP to prevent enterprises from falling into a vicious cycle of financing difficulties and declining innovation levels. Referring to the ‘Equator Principles’ [ 63 ], we should comprehensively evaluate the contribution of enterprises in terms of environmental protection and social responsibility, implement lenient financing policies for green transformation enterprises to encourage their green development, and strengthen the development of green financial products such as green credit, green funds, green insurance, green stocks and bonds, and carbon finance to provide more financing options for enterprises’ technological innovation investment [ 62 , 64 ].…”

Exploring the impact mechanism of executives’ environmental attention on corporate green transformation: evidence from the textual analysis of Chinese companies’ management discussion and analysis

“…The results show that EEA has a significant positive relationship with CGTP only in the eastern subgroup at the 10% level and not in the non-eastern subgroup. In the environmental attribute grouping, according to the “Guidelines on environmental information disclosure of listed companies” and the “Management list of environmental protection verification industries for listed companies” published by the State Ministry of Environmental Protection concerning studies of Yang and Niu ( 2021 ) and Ding et al ( 2022a , b ), we classify pharmaceutical manufacturing and 15 other industries as heavy polluters and 16 industries as non-heavy polluters, such as the agricultural and sideline foodstuffs processing industry. Meanwhile, to reduce sample selection bias and improve the comparability of regression results for subgroups, this paper uses the PSM method to analyze further whether there is heterogeneity in the relationship between EEA and CGTP among companies with different environmental attributes.…”

“…Environmental departments should build a mechanism for sharing the environmental data of enterprises and direct the attention of the whole society to environmental issues (Tian et al 2022 ). In addition, increasing the intensity of regulation and penalties is not only effective in forcing executives to improve the quality of textual information disclosure, thereby contributing to the efficiency of capital market information, but also in preventing corporate “greenwashing” behaviors and avoiding major environmental accidents (Ding et al 2022a , b ). Finance departments should improve the green financial system and implement green credit policies.…”

“…As macro influencing factors, environmental and financial policies are vital in guiding companies’ green transformation. Additionally, stakeholders increasingly demand the quality of corporate environmental information disclosure, and transparency of environmental information is an inevitable requirement for companies to implement sustainable development strategies (Ding et al 2022a , b ). Executives are the helmsmen of the company’s development direction and the makers of strategic decisions.…”