How Does Environmental Information Disclosure Affect Corporate Environmental Performance? Evidence from Chinese A-Share Listed Companies

TL;DR

This study investigates how environmental information disclosure influences corporate environmental performance in China, revealing significant improvements especially in densely populated areas, and emphasizes region-specific policies for sustainable development.

Contribution

It provides empirical evidence that environmental disclosure enhances corporate environmental performance and highlights regional heterogeneity and mechanisms involved.

Findings

Environmental disclosure significantly improves corporate environmental performance.

The effect is stronger in high-density, limited green space regions.

Region-specific policies can maximize the benefits of disclosure.

Abstract

Global climate warming and air pollution pose severe threats to economic development and public safety, presenting significant challenges to sustainable development worldwide. Corporations, as key players in resource utilization and emissions, have drawn increasing attention from policymakers, researchers, and the public regarding their environmental strategies and practices. This study employs a two-way fixed effects panel model to examine the impact of environmental information disclosure on corporate environmental performance, its regional heterogeneity, and the underlying mechanisms. The results demonstrate that environmental information disclosure significantly improves corporate environmental performance, with the effect being more pronounced in areas of high population density and limited green space. These findings provide empirical evidence supporting the role of environmental information disclosure as a critical tool for improving corporate environmental practices. The study highlights the importance of targeted, region-specific policies to maximize the effectiveness of disclosure, offering valuable insights for promoting sustainable development through enhanced corporate transparency.