Firm Size, Firm Performance, and Environmental Information Disclosure Quality: Evidence from Listed A-shares Companies in China's Shanghai and Shenzhen Stock Exchanges

Abstract

This study examines the impact of corporate performance and corporate size on corporate environmental information disclosure of A-share listed enterprises in Shanghai and Shenzhen during the period 2008–2017. In this study, corporate size (size) is represented by total assets, and corporate performance (Jzc) is represented by return on net assets. Environmental information disclosure quality (EID) is measured by the Environmental Information Disclosure Index (EIDI). Non-balanced panel data models are used. In order to eliminate the influence of unobservable factors during the sample period, year fixed effects and industry fixed effects are included. The results show that corporate size and performance both promote the improvement of EID quality. Measures such as improving corporate management efficiency and setting clear environmental performance indicators can help improve corporate competitiveness and core values, thus providing important support for improving EID quality. Future research is recommended to focus on the influence of internal corporate characteristics such as corporate nature (state-owned or not), equity structure, and executive background on EID quality.

Citation

Luo, X., Jaidi, J. and Nipo, D.T. (2024), "Firm Size, Firm Performance, and Environmental Information Disclosure Quality: Evidence from Listed A-shares Companies in China's Shanghai and Shenzhen Stock Exchanges", Hamdan, A., Alareeni, B. and Khamis, R. (Ed.) Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application (Studies in Managerial and Financial Accounting, Vol. 36), Emerald Publishing Limited, Leeds, pp. 193-201. https://doi.org/10.1108/S1479-351220240000036018