Can environmental disclosure improve price efficiency? The perspective of price delay

Jitao Zhang and Yongliang Yang

Finance Research Letters, 2023, vol. 52, issue C

Abstract: Environmental information disclosure transmits corporate information to the capital market, improves information transparency, and reduces price delays caused by information asymmetry. Using the data from Chinese listed companies from 2008 to 2020, we examine the impact of environmental information disclosure on price delay through the instrumental variable method. We find that (1) environmental disclosures can significantly reduce corporate price delays. (2) This relationship is more pronounced in companies with high individual ownership, low institutional ownership and a preference for voluntary and soft disclosures. (3) Environmental information disclosure can reduce corporate price delays by improving information transparency.

Keywords: Environmental information disclosure; Price delay; Information asymmetry; Capital market information efficiency (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007322

DOI: 10.1016/j.frl.2022.103556

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