Do institutional investors’ holdings affect corporate environmental information disclosure? Evidence from China

Qiang Li (), Wenjuan Ruan (), Ruotong Li () and Hanqiao Li ()
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Qiang Li: China University of Mining and Technology
Wenjuan Ruan: Teesside University, Teesside University
Ruotong Li: China University of Mining and Technology
Hanqiao Li: The University of Waikato

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2023, vol. 25, issue 12, No 43, 14733-14751

Abstract: Abstract Due to the increasingly serious environmental pollution, stakeholders are paying more attention on the environmental behavior of enterprises. Our paper investigates how institutional investors affect the quality of corporate environmental information disclosure (EID). Using a sample of A-share listed firms from the heavily polluting industries in China during 2008 to 2016, we conduct correlation analysis, OLS regression, and Tobit regression methods and find that institutional investors' shareholdings are positively correlated with the quality of EID. When institutional investors increase 1% shareholdings of the firm, the EID quality improves by 0.03%. In addition, the high concentration of institutional ownership enhances the impact of institutional investors' shareholdings on the EID quality. But this positive correlation is only observed in companies in regions with a high marketization level. Our paper extends the research on the influential factors of EID and improves the understanding of the impact of institutional investors on corporate environmental behavior.

Keywords: Environmental information disclosures; Institutional investors’ shareholdings; Ownership concentration (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10668-022-02686-9

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