Abstract:

Extensive research has been conducted on firms’ sustainability disclosures and the factors that may explain such disclosures. However, most studies have focused on developed countries. This study expands on the previous literature by examining environmental information disclosure (EID) in an emerging country, namely China. Using a panel dataset of 300 listed firms in the Shanghai Shenzhen CSI 300 Index (SHSZ300) from 2009 to 2019, this study investigates whether ownership structure (i.e. ownership concentration, institutional ownership, managerial ownership and state ownership) affects the EID of Chinese firms. This study shows that China’s EID practice has increased in recent years, but the EID level is still relatively low compared to developed countries. Furthermore, the results show that ownership concentration is positively correlated with EID, while the other three structures are negatively correlated with EID. This study finds that state-owned enterprises (SOEs) are less reliant on capital markets when financing their projects and may not have the incentive to provide environmental information to improve their image, leading to EID levels lower. While firms with lower degrees of state ownership are more likely to disclose environmental information. Overall, this study provides managers, owners, and policymakers with practical recommendations related to the urgent need for a more coordinated integration of governance and environmental regulations to ensure the sustainability in the emerging market.

Please choose your submission type: Full Paper

Primary Track: Corporate Governance

Keywords: Self-Governance and Internal Corporate Governance Mechanisms ,Ownership and Board Structure ,Sustainable governance (SDG goals)

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Ms. Mengdi Wei