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Environmental information disclosure in capital raising

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Listed:
  • Zhiying Ji
  • Xiao Yu
  • Jiefei Yang

Abstract

In 2010, the Chinese Government issued a policy to require enterprises to disclose environmental information. Using the environmental disclosure information of 204 Chinese listed companies in 20 polluting sectors over the period of 2011–2015, we find that managers tend to withhold environmental information and selectively disguise sensitive environmental information in the face of financial pressure, and where the disclosure of sensitive environmental information would significantly increase the cost of debt financing. Furthermore, agency conflicts and information asymmetry between managers and outside investors promote the managers' tendencies to withhold environmental information when facing financial pressure.

Suggested Citation

  • Zhiying Ji & Xiao Yu & Jiefei Yang, 2020. "Environmental information disclosure in capital raising," Australian Economic Papers, Wiley Blackwell, vol. 59(3), pages 183-214, September.
    • Handle: RePEc:bla:ausecp:v:59:y:2020:i:3:p:183-214
    DOI: 10.1111/1467-8454.12176
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    References listed on IDEAS

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    1. Xiaoya Zhu & Yunli Zhu & Xiaohua Meng, 2021. "Government Environmental Information Disclosure and Environmental Performance: Evidence from China," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    2. Linyan Fan & Sheng Yao, 2022. "Analyst Site Visits and Corporate Environmental Information Disclosure: Evidence from China," IJERPH, MDPI, vol. 19(23), pages 1-21, December.
    3. Maria Aluchna & Maria Roszkowska‐Menkes & Sana Khan, 2024. "Corporate governance perspective on environmental reporting: Literature review and future research agenda," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1550-1577, May.

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