How does mandatory environmental regulation affect corporate environmental information disclosure quality

Guangqiang Liu and Liangju Guo

Finance Research Letters, 2023, vol. 54, issue C

Abstract: We utilize the environment fee to tax reform implemented in 2018 as a quasi-experiment, to investigate the impact of mandatory environmental regulation change on firm environmental information disclosure quality. Using data from listed companies in China between 2015 and 2020, we found that the mandatary environment regulation positively affects the monetary and non-monetary environmental information disclosure in heavy polluting industries. The mechanism analysis shows that external governance and internal control mediate the effect of mandatory environmental regulation on environmental information disclosure quality. We also found that, firms with low market values and no environmental subsidies disclosed more information due to environmental taxes.

Keywords: Mandatory regulations; Environmental fee to tax reform; Environmental information disclosure; Internal control (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323000764

DOI: 10.1016/j.frl.2023.103702

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