Title: Can environmental information disclosure regulate the relationship between environmental cost and enterprise value?
Authors: Liping Wang; Chuang Li; Shuqin Li
Addresses: Finance and Economics College, Jimei University, Xiamen, 361021, China ' School of Business Administration, Jimei University, Xiamen, 361021, China ' Business School, Hohai University, Nanjing, 211100, China
Abstract: This paper builds up a unified framework including environmental information disclosure (EID), environmental cost and enterprise value, and studies the mechanism based on structural equation model. The main conclusions are as follows: (1) EID is significantly and positively related to corporate value; (2) Environmental cost is significantly negatively correlated with enterprise value, that means there is a trade-off between environmental cost and enterprise value in the short term, but in the long run, the impact is not significant; (3) EID can effectively alleviate the negative correlation between environmental cost and enterprise value, enterprise can use EID tools to curb the adverse impact of increased environmental cost on enterprise value. The above conclusions reflect that EID is an important path to realise the unification of environmental and economic benefits of enterprises.
Keywords: EID; environmental information disclosure; environmental cost; enterprise value; enterprise environmental strategy; environmental performance; stakeholders; heavy pollution industry; environmental awareness; ecological civilisation construction; structural equation model.
International Journal of Environment and Pollution, 2020 Vol.67 No.2/3/4, pp.95 - 110
Received: 29 Apr 2020
Accepted: 21 Nov 2020
Published online: 20 Sep 2021 *