IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v59y2024ics1544612323011650.html
   My bibliography  Save this article

The impact of air pollution on corporate environmental information disclosure–Evidence from heavy pollution industries in China

Author

Listed:
  • Siming, Yu
  • Lingli, Xu
  • Peng, Du
  • Zhaohui, Qin
  • Qianqian, Zhong
  • Tuanjie, Zhao

Abstract

This paper studies the relationship between air pollution and the quality of environmental information disclosure taking the A-share listed companies in Shanghai and Shenzhen from 2014 to 2020 as sample. The study found that: firstly, air pollution will reduce the quality of enterprise environmental information disclosure. The main reason is that senior executives living in air pollution areas are more likely to have negative emotions, and the negative emotions of senior executives will make them have a negative attitude towards environmental information disclosure, thus reducing the quality of environmental information disclosure of enterprises. Second, the nature of state-owned enterprises positively regulates the negative correlation between air pollution and enterprise environmental information disclosure, while senior executive shareholding weakens the relationship between air pollution and environmental information disclosure. Further analysis found that: first, air pollution reduces the level of non-monetary and monetary environmental information disclosure. The research provides empirical evidence that air quality changes affect micro-business behavior.

Suggested Citation

  • Siming, Yu & Lingli, Xu & Peng, Du & Zhaohui, Qin & Qianqian, Zhong & Tuanjie, Zhao, 2024. "The impact of air pollution on corporate environmental information disclosure–Evidence from heavy pollution industries in China," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011650
    DOI: 10.1016/j.frl.2023.104793
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323011650
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104793?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.

    References listed on IDEAS

    as
    1. Wu, Qinin & Lu, Jing, 2020. "Air pollution, individual investors, and stock pricing in China," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 267-287.
    2. Avraham Ebenstein & Maoyong Fan & Michael Greenstone & Guojun He & Peng Yin & Maigeng Zhou, 2015. "Growth, Pollution, and Life Expectancy: China from 1991-2012," American Economic Review, American Economic Association, vol. 105(5), pages 226-231, May.
    3. Currie, Janet & Neidell, Matthew & Schmieder, Johannes F., 2009. "Air pollution and infant health: Lessons from New Jersey," Journal of Health Economics, Elsevier, vol. 28(3), pages 688-703, May.
    4. Ismail KALASH, 2020. "Environmental Disclosure: Determinants and Effects on Financial Performance? An Empirical Evidence from TurkeyAbstract: This article investigates the determinants of public disclosure of environmental," Sosyoekonomi Journal, Sosyoekonomi Society.
    5. Siqi Zheng & Jianghao Wang & Cong Sun & Xiaonan Zhang & Matthew E. Kahn, 2019. "Air pollution lowers Chinese urbanites’ expressed happiness on social media," Nature Human Behaviour, Nature, vol. 3(3), pages 237-243, March.
    6. Levy, Tamir & Yagil, Joseph, 2011. "Air pollution and stock returns in the US," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 374-383, June.
    7. Charles Cho & Dennis Patten & Robin Roberts, 2006. "Corporate Political Strategy: An Examination of the Relation between Political Expenditures, Environmental Performance, and Environmental Disclosure," Journal of Business Ethics, Springer, vol. 67(2), pages 139-154, August.
    8. Cheung, Chun Wai & He, Guojun & Pan, Yuhang, 2020. "Mitigating the air pollution effect? The remarkable decline in the pollution-mortality relationship in Hong Kong," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    9. Jia Meng & ZhongXiang Zhang, 2022. "Corporate Environmental Information Disclosure and Investor Response: Empirical Evidence from China's Capital Market," Working Papers 2022.03, Fondazione Eni Enrico Mattei.
    10. He, Guojun & Fan, Maoyong & Zhou, Maigeng, 2016. "The effect of air pollution on mortality in China: Evidence from the 2008 Beijing Olympic Games," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 18-39.
    11. Klein, April, 2002. "Audit committee, board of director characteristics, and earnings management," Journal of Accounting and Economics, Elsevier, vol. 33(3), pages 375-400, August.
    12. Q. Li & C.H. Peng, 2016. "The stock market effect of air pollution: evidence from China," Applied Economics, Taylor & Francis Journals, vol. 48(36), pages 3442-3461, August.
    13. Clarkson, Peter M. & Li, Yue & Richardson, Gordon D. & Vasvari, Florin P., 2008. "Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 303-327.
    14. Coneus, Katja & Spiess, C. Katharina, 2012. "Pollution exposure and child health: Evidence for infants and toddlers in Germany," Journal of Health Economics, Elsevier, vol. 31(1), pages 180-196.
    15. Ali Meftah Gerged, 2021. "Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 609-629, January.
    16. Grigoris Giannarakis & Andreas Andronikidis & Nikolaos Sariannidis, 2020. "Determinants of environmental disclosure: investigating new and conventional corporate governance characteristics," Annals of Operations Research, Springer, vol. 294(1), pages 87-105, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Linfeng & Shi, Tie & Chen, Hanyi, 2023. "Air pollution and infant mortality: Evidence from China," Economics & Human Biology, Elsevier, vol. 49(C).
    2. Su, Yuandong & Lu, Xinjie & Zeng, Qing & Huang, Dengshi, 2022. "Good air quality and stock market returns," Research in International Business and Finance, Elsevier, vol. 62(C).
    3. Ju, Heng & Tang, Yao & Zhang, Meilan, 2024. "Air Pollution's Grip: Drug Cost and Its Heterogeneity in China," MPRA Paper 121154, University Library of Munich, Germany.
    4. Wang, Jie & Wang, Wanwan & Yuan, Fang, 2023. "Air pollution and corporate risk-taking: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 570-586.
    5. Fan Yang & Yao Jiang, 2020. "Heterogeneous Influences of Social Support on Physical and Mental Health: Evidence from China," IJERPH, MDPI, vol. 17(18), pages 1-17, September.
    6. Fan, Maoyong & Jiang, Hanchen & Zhou, Maigeng, 2023. "Beyond particulate matter: New evidence on the causal effects of air pollution on mortality," Journal of Health Economics, Elsevier, vol. 91(C).
    7. Colmer, Jonathan & Lin, Dajun & Liu, Siying & Shimshack, Jay, 2021. "Why are pollution damages lower in developed countries? Insights from high-Income, high-particulate matter Hong Kong," Journal of Health Economics, Elsevier, vol. 79(C).
    8. Ting Yao & Yue‐Jun Zhang, 2024. "The impact of air pollution on crude oil futures market," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 44(6), pages 1055-1068, June.
    9. Xu, Alan, 2022. "Air pollution and mediation effects in stock market, longitudinal evidence from China," International Review of Financial Analysis, Elsevier, vol. 83(C).
    10. Soo Hong Chew & Haoming Liu & Alberto Salvo, 2021. "Adversity-hope hypothesis: Air pollution raises lottery demand in China," Journal of Risk and Uncertainty, Springer, vol. 62(3), pages 247-280, June.
    11. Xiaojing Jia & Xin Luo, 2023. "Residents’ Health Effect of Environmental Regulations in Coal-Dependent Industries: Empirical Evidence from China’s Cement Industry," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    12. Sun, Zhen & Cheng, Lei, 2021. "Air pollution and procyclical mortality: Evidence from China," China Economic Review, Elsevier, vol. 68(C).
    13. Liu, Xiaoying & Miao, Huazhang & Behrman, Jere R. & Hannum, Emily & Liang, Zhijiang & Zhao, Qingguo, 2022. "The Asian Games, air pollution and birth outcomes in South China: An instrumental variable approach," Economics & Human Biology, Elsevier, vol. 44(C).
    14. Zhuhua Jiang & Rangan Gupta & Sowmya Subramaniam & Seong-Min Yoon, 2021. "The Effect of Air Quality and Weather on the Chinese Stock: Evidence from Shenzhen Stock Exchange," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    15. Cheung, Chun Wai & He, Guojun & Pan, Yuhang, 2020. "Mitigating the air pollution effect? The remarkable decline in the pollution-mortality relationship in Hong Kong," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    16. Gary Peters & Andrea Romi, 2014. "Does the Voluntary Adoption of Corporate Governance Mechanisms Improve Environmental Risk Disclosures? Evidence from Greenhouse Gas Emission Accounting," Journal of Business Ethics, Springer, vol. 125(4), pages 637-666, December.
    17. Bombardini, Matilde & Li, Bingjing, 2020. "Trade, pollution and mortality in China," Journal of International Economics, Elsevier, vol. 125(C).
    18. Tong Liu & Guojun He & Alexis Lau, 2018. "Avoidance behavior against air pollution: evidence from online search indices for anti-PM2.5 masks and air filters in Chinese cities," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(2), pages 325-363, April.
    19. Wang, Qinyun & Wang, Xuebin & Yan, Qianhui & Zhang, Lvqing, 2024. "Heavy industry regulations, hospitalization, and medical expenditures: Evidence from micro-level medical records in a northeast Chinese city," Energy Economics, Elsevier, vol. 129(C).
    20. Ainhoa Aparicio, 2014. "Newborn Health and the Business Cycle," CINCH Working Paper Series 1402, Universitaet Duisburg-Essen, Competent in Competition and Health.

    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:eee:finlet:v:59:y:2024:i:c:s1544612323011650. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    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.