Can mandatory environmental information disclosure achieve a win-win for a firm's environmental and economic performance?. (20th March 2020)

• Record Type: Journal Article
• Authors: Ren, Shenggang; Wei, Wenjuan; Sun, Helin; Xu, Qinyi; Hu, Yucai; Chen, Xiaohong
• Is Part Of: Journal of cleaner production. Volume 250(2020)
• Publication Date: 2020-03-20
• Subjects: Mandatory environmental information disclosure -- Environmental performance -- Economic performance -- Chinese listed company; EID environmental information disclosure -- MEID Mandatory environmental information disclosure -- SMEs small and medium-sized enterprises -- SOE state-owned-enterprise -- NSE Non-state-owned enterprise; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2019.119530
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: Using the Guidelines of the Shanghai Stock Exchange on Environmental Information Disclosure for Listed Companies issued in 2008 as a quasi-natural experiment, we employ DID (difference in differences) model to identify the effects of China's mandatory environmental information disclosure (MEID) on a firm's environmental and economic performance. The results show that MEID has a positive impact on the firm's environmental performance, but has a negative impact on the firm's economic performance; MEID affects the firm's environmental and economic performance by increasing environmental management activities and costs; this policy has a more significant impact on the state-owned enterprises and small and medium enterprises than on non-state-owned enterprises and large enterprises. The results remain robust in a series of robustness tests. This study offers guidance for policymakers seeking to improve environmental information disclosure policies. Highlights: Explore the effects of MEID on the firm's environmental and economic performance. Employ DID model to identify the impact of the MEID on firm performance. MEID has a positive impact on environmental performance, but a negative impact on economic performance. MEID affects firm's environmental and economic performance by increasing environmental management costs.