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The impact of the amount of environmental information disclosure on financial performance: The moderating effect of corporate internationalization

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  • Yi Yang
  • Congxu Yao
  • Ying Li

Abstract

Based on the data of A‐share heavily polluting listed companies in China from 2010 to 2017, this study uses content analysis and multiple linear regression to investigate the effect of the amount of corporate environmental information disclosure on financial performance and the moderating effect of corporate internationalization on this relationship. The results confirm the significant negative impact of the amount of environmental information disclosure on financial performance, while corporate internationalization has a positive moderating effect on this relationship. The degree of regional marketization and corporate ownership influences this moderating effect. Thus, a mandatory disclosure mechanism with a legal basis and clear standards is necessary, but should include diverse policies and improved incentive mechanisms in light of the differences in regional development in China. In addition, international organizations should encourage companies to increase their international operations. The robustness test shows that the results are reliable.

Suggested Citation

  • Yi Yang & Congxu Yao & Ying Li, 2020. "The impact of the amount of environmental information disclosure on financial performance: The moderating effect of corporate internationalization," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2893-2907, November.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:6:p:2893-2907
    DOI: 10.1002/csr.2010
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    2. Liu, Jianlei & Uchida, Konari & Bao, Chenyu, 2024. "Environmental regulation, corporate environmental disclosure, and firm performance: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    3. Guo, Chong & Jiang, Yalin & Yu, Fang & Wu, Yingyu, 2023. "Does environmental information disclosure promote or prohibit financialization of non-financial firms? Evidence from China," The Quarterly Review of Economics and Finance, Elsevier, vol. 92(C), pages 200-214.
    4. Peng‐Yu Li, 2023. "Determinants of corporate social responsibility performance in emerging markets: An international orientation perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1348-1362, May.
    5. Changchun Zhu & Na Li & Jing Ma, 2023. "Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2885-2905, November.
    6. Victoria Bogdan & Claudia Diana Sabău-Popa & Marcel-Ioan Boloș & Dorina-Nicoleta Popa & Mărioara Beleneși, 2022. "Tracking Waste Management Information Disclosure Behavior Connected to Financial Performance through Moderating Variables," IJERPH, MDPI, vol. 19(20), pages 1-25, October.
    7. Eugene Kang & Nguyen Bao Lam, 2023. "The impact of environmental disclosure on initial public offering underpricing: Sustainable development in Singapore," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 119-133, January.
    8. Ge Wang & Huijin Zhang & Saixing Zeng & Xiaohua Meng & Han Lin, 2023. "Reporting on sustainable development: Configurational effects of top management team and corporate characteristics on environmental information disclosure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 28-52, January.
    9. Zhong, Xi & Chen, Weihong & Ren, Ge, 2022. "The impact of corporate social irresponsibility on emerging-economy firms’ long-term performance: An explanation based on signal theory," Journal of Business Research, Elsevier, vol. 144(C), pages 345-357.
    10. Dameng Hu & Yuanzhe Huang & Changbiao Zhong, 2021. "Does Environmental Information Disclosure Affect the Sustainable Development of Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 13(19), pages 1-22, October.
    11. Jing‐Yue Liu & Yue‐Jun Zhang & Charles H. Cho, 2023. "Corporate environmental information disclosure and green innovation: The moderating effect of CEO visibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3020-3042, November.
    12. Manuel Bueno‐García & Gozal Ahmadova, 2024. "The influence of state ownership on environmental proactivity: An institutional perspective of international firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1531-1549, May.

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