Does environmental information disclosure promote or prohibit financialization of non-financial firms? Evidence from China

Chong Guo, Yalin Jiang, Fang Yu and Yingyu Wu

The Quarterly Review of Economics and Finance, 2023, vol. 92, issue C, 200-214

Abstract: This study investigates whether and how corporate environmental information disclosure influences financialization in non-financial companies. Using data from Chinese listed firms, we find that environmental information disclosure significantly reduces the financialization of nonfinancial firms. Based on signalling theory and resource constraint theory, additional analysis shows that environmental information disclosure boosts firms’ operating income and drives corporate research and development input, which inhibits corporate financialization. Furthermore, the heterogeneous results indicate that the impeding impact of environmental information disclosure is more pronounced for firms located in the eastern region and non-state-owned companies.

Keywords: Environmental information disclosure; Corporate financialization; Operating income; Research and development input (search for similar items in EconPapers)
JEL-codes: G32 M14 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:92:y:2023:i:c:p:200-214

DOI: 10.1016/j.qref.2023.10.005

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