Abstract
This article examines whether economic performance could affect EID and how the relationship is determined by the form of ownership from voluntarism to regulation under the current Chinese context. In this study, our empirical results show that the relationship between firms’ performance and EID is complex and the interactive impact of ownership and economic performance on EID significantly varies from voluntary disclosure to mandatory disclosure. This study provides a more comprehensive understanding of the motivations in corporate EID. The performance–impression theory can be used to explain the disclosure behaviors during the period of voluntary disclosure, while the pressure–legitimacy theory can be used during the period of mandatory disclosure. The finding suggests that when evaluating corporate EID associated with economic performance in emerging economies such as China, it needs to be cautious, as which tends to vary with the form of ownership and whether there is any mandatory regulation in place.
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Notes
Based on Industry Classification Guidance of Listed Companies issued by the China Securities Regulatory Commission in April 2001.
Guide to Environmental Information Disclosure for Listed Companies issued on May 14, 2008.
See more details discussed by Petersen (2009). Programming advice and code is accessible in Petersen’s Web page (www.kellogg.northwestern.edu/faculty/petersen/htm/papers/se/se_programming.htm).
If not disclose the exceeding emissions or not accord to the rules of environmental disclosure by SEPA, the firms will be fined not more than 100,000 yuan RMB and exposed by environmental authority. In the regulation of Shanghai Stock Exchange, if the listed companies do not timely, accurately, and completely disclose relevant environmental information in accordance with the requirements, the persons in charge and their firm would be punished according to the extent of violation.
The authors would like to thank one of anonymous referees for his suggestion.
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Acknowledgments
We would like to thank two anonymous referees for very helpful suggestions that substantially improved this article. This study is supported by the National Natural Science Foundation of China (No. 71025006) and the Ministry of Education of China (20090073110029).
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Meng, X.H., Zeng, S.X. & Tam, C.M. From Voluntarism to Regulation: A Study on Ownership, Economic Performance and Corporate Environmental Information Disclosure in China. J Bus Ethics 116, 217–232 (2013). https://doi.org/10.1007/s10551-012-1462-8
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DOI: https://doi.org/10.1007/s10551-012-1462-8