IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v29y2022i4p916-938.html
   My bibliography  Save this article

Price pressure effects of short selling on environmental disclosure

Author

Listed:
  • Sheng Yao

Abstract

Most studies argue that short selling is an external constraint mechanism that can restrict managers’ manipulation of financial information according to the disciplining hypothesis. Whether this conclusion is also suitable for environmental information, however, is still unclear. Therefore, we examine the effect of short selling on environmental disclosure by using empirical data from China. We find that pilot firms, after being added to the pilot short-selling list, disclose less environmental information than non-pilot firms do. Further examination shows that the pilot firms’ internal and external monitoring mechanisms can affect managers’ decision-making regarding environmental information. The results suggest that when a short-selling mechanism is implemented, it is important that the appropriate regulatory department mandatorily receives environmental information disclosure. Simultaneously, the pilot firms’ internal and external monitoring mechanisms should be strengthened to mitigate the negative disclosure behavior of managers.

Suggested Citation

  • Sheng Yao, 2022. "Price pressure effects of short selling on environmental disclosure," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 29(4), pages 916-938, July.
  • Handle: RePEc:taf:raaexx:v:29:y:2022:i:4:p:916-938
    DOI: 10.1080/16081625.2020.1754250
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2020.1754250
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/16081625.2020.1754250?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:29:y:2022:i:4:p:916-938. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.