Feng, E., Siu, Y.L. orcid.org/0000-0003-3585-5861, Wong, C.W.Y. et al. (2 more authors) (2023) Can environmental information disclosure spur corporate green innovation? Science of The Total Environment, 912. 169076. ISSN 0048-9697
Abstract
How can the disclosure of environmental information (EID) stimulate corporate green innovation (CGI)? This research challenges the prevailing assumption that environmental regulations impact CGI by influencing corporate compliance costs. Instead, it offers a fresh theoretical framework to explain how EID affects CGI. This study combines signal theory and resource dependence theory to develop a moderated mediation model, illustrating how EID reduces information asymmetry and alleviates corporate financial constraints (CFC). To test these hypotheses, this study utilized data from A-share listed companies spanning the period 2004 to 2017. This study considered the year 2009 as a crucial point of analysis, marking the period before and after the implementation of China's first EID policy in 2008. This study employed a Difference-in-Differences (DID) model. The results reveal that EID has a positive impact on CGI by mitigating CFC, with non-state-owned enterprises (non-SOEs) exhibiting a more pronounced mediating effect. These findings remain robust even when the parallel trend assumption was tested to eliminate interference from other factors. This study unveils the mechanism through which voluntary environmental regulation, represented by EID, influences CGI by mitigating information asymmetry and alleviating CFC. These results deviate from the predictions of compliance cost theory and Porter's hypothesis regarding the impact of traditional environmental regulations on CGI, providing a fresh perspective on the role of voluntary environmental regulation in driving CGI.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 Published by Elsevier B.V. This is an author produced version of an article published in Science of the Total Environment. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Environmental information disclosure, Corporate green innovation, Information asymmetry, Corporate financial constraint, Signal theory, Resource dependence theory |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > School of Earth and Environment (Leeds) > Sustainability Research Institute (SRI) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 05 Dec 2023 15:55 |
Last Modified: | 03 Dec 2024 01:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.scitotenv.2023.169076 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:206191 |