The Moderating Role of Environmental Information Disclosure on the Impact of Environment Protection Investment on Firm Value

Kedan Wang, Wenjia Cui, Mei Mei, Benfu Lv and Geng Peng ()
Additional contact information
Kedan Wang: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Wenjia Cui: Business Research and Development Center of ICBC, Beijing 100096, China
Mei Mei: Institute of Medical Information & Library, Chinese Academy of Medical Sciences, Beijing 100005, China
Benfu Lv: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Geng Peng: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China

Sustainability, 2023, vol. 15, issue 12, 1-27

Abstract: The presence of a link between corporate environmental protection investment and firm value is essential for enterprises to have incentives to invest in environmental protection by themselves. How environmental information disclosure affects the relationship between environmental protection investment and firm value is also an issue worth exploring. This paper uses the regression model with the industry and time-fixed effects to examine the relationship between environmental protection investment and firm value of China’s A-share heavily and non-heavily polluting enterprises from 2010–2020, as well as the moderating role of environmental information disclosure. The empirical results show that (1) there is a significant U-shaped relationship between environmental protection investment and firm value, and (2) corporate environmental information disclosure has a moderating effect. Specifically, it has an “amplifying” effect on the relationship between environmental protection investment and firm value. If a company’s environmental protection investment is insufficient, overly transparent corporate environmental disclosure will exacerbate the decline in firm value. Once environmental protection investment is up to standard, adequate disclosure can contribute to an increase in firm value.

Keywords: environment protection investment; corporate information disclosure; firm value; moderating effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 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)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/12/9174/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/12/9174/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:12:p:9174-:d:1165094

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().