Leveraging Environmental Regulation: How Green Innovation Moderates the Relationship Between Carbon Information Disclosure and Firm Value

Runyu Liu, Mara Ridhuan Che Abdul Rahman () and Ainul Huda Jamil
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Runyu Liu: Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia
Mara Ridhuan Che Abdul Rahman: Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia
Ainul Huda Jamil: Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia

Sustainability, 2025, vol. 17, issue 6, 1-35

Abstract: As global concerns over climate change intensify, carbon information disclosure has emerged as a critical factor influencing firm value. However, the relationship between carbon information disclosure and firm value remains inconclusive in the existing literature, particularly within the context of China’s evolving environmental policies. This study investigates the impact of carbon information disclosure on firm value while examining the moderating role of green innovation and the moderating moderated effect of environmental regulation. Drawing on stakeholder theory, resource-based theory, and institutional theory, this study constructs a comprehensive research framework and employs panel data regression analysis on a sample of 1753 firm ten-year observations from A-share listed companies in China between 2013 and 2022. The results reveal that carbon information disclosure significantly enhances firm value, and green innovation positively moderates this relationship. Furthermore, environmental regulation strengthens the moderating effect of green innovation, acting as a leverage effect that amplifies the financial benefits of carbon information disclosure. These findings highlight the importance of integrating regulatory policies with corporate sustainability strategies. This study contributes to the literature by providing empirical evidence on the synergistic effects of carbon information disclosure, green innovation, and environmental regulation, offering insights for sustainable corporate development.

Keywords: carbon information disclosure; green innovation; environmental regulation; firm value; panel data (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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