The Impact of Environmental Information Disclosure on Business Performance: Evidence from High-Polluting Industries in China

Environmental management is a major goal for many Chinese companies as sustainability has become a critical issue not only for one company but, for the whole society. The paper studies the relationship between environmental information disclosure and business performance by investigating the publicly available environmental information disclosure in China. We use data of annual financial statements, sustainability disclosure reports, environment reports, and social responsibility reports of high-polluting companies listed at Shanghai Stock Exchange. Our investigation leads towards following two findings: (1) Environmental information disclosure has a positive impact on business performance; and (2) the positive impact is more significant for state-owned enterprises as compared to non-state-owned enterprises. Keywords: Environmental information disclosure; Business performance; High-polluting industries; Chin