Green governance and value relevance of earnings

Bo Zhu and Shaoqian Wu

International Review of Financial Analysis, 2025, vol. 102, issue C

Abstract: Using a large sample of Chinese listed companies from 2011 to 2021, this study examines whether and how green governance affects the value relevance of accounting earnings based on information usefulness for decision-making. The level of corporate green governance has a significantly positive impact on the value relevance of earnings. In the heterogeneity analysis, the positive effect is more pronounced for firms with low internal control quality and high financialization. Furthermore, mediating effects analyses indicate that corporate reputation and analyst following are two underlying channels through which green governance affects firms' value relevance of earnings. These findings are robust to addressing endogeneity concerns, alternative model specifications, lagging explanatory variables, and other proxies for key variables.

Keywords: Green governance; Value relevance of earnings; Corporate reputation; Analyst following (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521925002078
Full text for ScienceDirect subscribers only

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:eee:finana:v:102:y:2025:i:c:s1057521925002078

DOI: 10.1016/j.irfa.2025.104120

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().