Can mandatory environmental information disclosure achieve a win-win for a firm’s environmental and economic performance?

By Shenggang Ren, Wenjuan Wei, Helin Sun, Qinyi Xu, Y. Hu, Xiaohong Chen. 2020

152 citations recorded by the source corpus.

Abstract Using the Guidelines of the Shanghai Stock Exchange on Environmental Information Disclosure for Listed Companies issued in 2008 as a quasi-natural experiment, we employ DID (difference in differences) model to identify the effects of China’s mandatory environmental information disclosure (MEID) on a firm’s environmental and economic performance. The results show that MEID has a positive impact on the firm’s environmental performance, but has a negative impact on the firm’s economic performance; MEID affects the firm’s environmental and economic performance by increasing environmental management activities and costs; this policy has a more significant impact on the state-owned enterprises and small and medium enterprises than on non-state-owned enterprises and large enterprises. The results remain robust in a series of robustness tests. This study offers guidance for policymakers seeking to improve environmental information disclosure policies.

Subfields: Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/99c08b7f315e0183bca9755df8687a9c888b3b23