Impact of Environmental Information Disclosure on Corporate Risk Taking: Evidence from China
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Boya Liu
College:
College of Business and Public Management
Major:
Accounting
Faculty Research Advisor(s):
Xue Chunxiao
Abstract:
This paper examines the relationship between environmental information disclosure and corporate risk-taking. This paper obtains data from China A-shares listed companies, and mainly from the Chinese Securities Market and Accounting Research (CSMAR) database. The research sample contains 4,208 companies of 26,557 firm-year observations in China from 2012-2021. The main result of this paper is that environmental information disclosure and corporate risk-taking are negatively correlated. Transparency of environmental information leads to a lower level of risk-taking. Additional analysis shows that ownership structures of SOEs and non-SOEs have limited influence on the relationship between environmental information disclosure and corporate risk-taking. Results of this paper contribute to more comprehensive corporate governance analysis. This paper empirically analyzes this relationship, while the implicit reasons for this relationship need more research to investigate. As an important method and way to achieve reduced carbon emission targets, environmental information disclosure has gradually attracted widespread attention from the government and the public.
JEL Classification: Q5, G3, D8
Keywords: Environmental information disclosure, corporate risk taking