The Impact of Environmental Information Disclosure on Corporate Sustainability: The Mediating Role of Profitability

Xinyue Wu, Wenqian Liang, Qinglei Ying, Hongwei Dai, Haixin Chen and Jie Jiang ()
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Xinyue Wu: School of Law and Public Administration, Nanjing University of Information Science and Technology, Nanjing 211544, China
Wenqian Liang: School of Law and Public Administration, Nanjing University of Information Science and Technology, Nanjing 211544, China
Qinglei Ying: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 211544, China
Hongwei Dai: College of Electronic and Optical Engineering & College of Flexible Electronics (Future Technology), Nanjing University of Posts and Telecommunications, Nanjing 211544, China
Haixin Chen: School of Law and Public Administration, Nanjing University of Information Science and Technology, Nanjing 211544, China
Jie Jiang: School of Law and Public Administration, Nanjing University of Information Science and Technology, Nanjing 211544, China

Sustainability, 2025, vol. 17, issue 10, 1-23

Abstract: The Chinese government places significant emphasis on high-quality, sustainable economic development, with the value of environmental information becoming increasingly prominent. Corporate stakeholders are paying greater attention to environmental disclosures. This study analyzes data from Chinese A-share listed companies in Shanghai and Shenzhen from 2008 to 2023, exploring the relationships and influence mechanisms among environmental information disclosure, profitability, and corporate sustainable development through multiple regression models. The results indicate that environmental information disclosure promotes corporate sustainable development (with an effect coefficient of 1.441, p < 0.01), while also enhancing profitability (with an effect coefficient of 0.009, p < 0.01). Moreover, profitability serves as a mediator in the relationship between environmental information disclosure and corporate sustainable development (with an effect coefficient of 1.089, p < 0.01). These findings remain robust after a series of tests. Heterogeneity studies further reveal that the positive impact of environmental disclosure on corporate sustainability performance is more pronounced among non-state-owned firms and firms with high leverage ratios. Overall, the research findings help encourage enterprises to prioritize environmental impact, practice sustainable operations, and enhance profitability, long-term competitiveness, and market adaptability.

Keywords: environmental information disclosure; profitability; sustainable development; mediating effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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