Impact of State Ownership on Greenhouse Gas Emissions Disclosures in China

Abstract

Greenhouse gas (GHG) emission has a detrimental impact on climate change. There is an increasing trend for firms to use disclosure to signal stakeholders about its environmental responsibilities and performance in dealing with climate change. China is one of the countries producing the most carbon emissions. Over the last decade, Chinese state-owned enterprises (SOEs) are becoming important players in international trade. However, the existing literature provides limited evidence on how Chinese SOEs influence GHG disclosure. Through the lens of stakeholder–agency theory, this chapter studies the top 300 listed firms to examine the relationship between Chinese SOEs and the likelihood of GHG disclosure. The result suggests a negative relationship between Chinese SOEs and the likelihood of GHG disclosure. This could be explained as a consequence of the managers' political self-interests, economic and policy-oriented decision-making process and the power differentials between the government and SOE managers. This research extends the GHG literature to Chinese SOEs context, providing direct evidence on how state ownership impacts on GHG disclosure.

Citation

Chen, Z., Liu, Y., Hu, Y. and Zhang, L. (2023), "Impact of State Ownership on Greenhouse Gas Emissions Disclosures in China", Tauringana, V. and Moses, O. (Ed.) Green House Gas Emissions Reporting and Management in Global Top Emitting Countries and Companies (Advances in Environmental Accounting & Management, Vol. 11), Emerald Publishing Limited, Leeds, pp. 29-49. https://doi.org/10.1108/S1479-359820230000011003