Beyond transparency: Unpacking the financial effects of third-party environmental disclosure in China's semiconductor sector
Document Type
Article
Publication Date
6-1-2024
Abstract
This study aims to investigate the impact of third-party environmental information disclosure (EiD) on the corporate financial performance (CFP) of Chinese semiconductor companies listed on the Shanghai and Shenzhen Stock Exchanges from 2008 to 2022. Utilizing the two-way fixed effects model and method of moments quantile regression (MMQR), the results reveal that for each unit increase in third-party EiD index, there is a corresponding 0.87% increase in investments returns. However, this impact is moderated by the presence of female executives and strengthened by CEO political ties. The findings further identify financial constraints and green subsidies as mediating mechanisms, indicating that while financial constraints can deter third-party EiD adoption, green subsidies can facilitate it. High transparency does not always result in financial gains despite the general benefits. This study contributes to understanding the role of third-party EiD in driving corporate sustainability and provides empirical evidence regarding the financial and operational implications of voluntary engagement of the public in environmental governance. Such findings can inform corporate decision-making and policy formulation, encouraging more firms to participate in environmental regulation initiatives voluntarily.
Keywords
Third-party environmental information, disclosure, Voluntary environmental regulations, Corporate financial performance, Female CEO, CEO political ties
Divisions
Faculty_of_Business_and_Accountancy
Funders
Ministry of Science and Higher Education of the Russian Federation (Ural Federal University Program of Development within the Priority-2030 Program)
Publication Title
Journal of Environmental Management
Volume
360
Publisher
Elsevier
Publisher Location
24-28 OVAL RD, LONDON NW1 7DX, ENGLAND