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Post-regulation effect on factors driving environmental disclosures among Chinese listed firms

Kemi Yekini (Department of Accounting, University of Nottingham Business School, Nottingham, UK)
Ismail Adelopo (Department of Accounting Economics and Finance, University of the West of England, Bristol, UK)
Yan Wang (Department of Accounting and Finance, De Montfort University, Leicester, UK)
Surong Song (School of Management, University of Leicester, Leicester, UK)

Accounting Research Journal

ISSN: 1030-9616

Article publication date: 27 September 2019

292

Abstract

Purpose

The purpose of this study is to re-examine the factors that affect the level of environmental information disclosures (EID) following the issuance of the “Environmental Information Disclosure Guidelines for Chinese Listed Companies”.

Design/methodology/approach

The study is underpinned by stakeholder and legitimacy theories. Level of EID was measured for 100 Chinese companies using a scoring system and content analysis of their annual reports. The study explored the effect of ownership structure, managerial shareholding, economic power and industry classification on the level of EID using panel regression.

Findings

The study revealed that with clearly spelt out guidelines, Chinese companies are prepared to disclose environmental information regardless of their economic power. It was found that the overall level of EID in China remains lower than in developed economies. The findings are robust across several econometric models that sufficiently address various endogeneity problems.

Originality/value

This paper contributes to the existing literature by using new and updated data to re-examine the factors that affect the level of EID among Chinese listed companies. The study is important and timely as it covers the period 2014-2016, which is after the Chinese Government strengthened the enforcement of EID. It highlights the effects of new regulations and underscored areas that still require government attention to foster effective environmental protection.

Keywords

Citation

Yekini, K., Adelopo, I., Wang, Y. and Song, S. (2019), "Post-regulation effect on factors driving environmental disclosures among Chinese listed firms", Accounting Research Journal, Vol. 32 No. 3, pp. 477-495. https://doi.org/10.1108/ARJ-01-2017-0018

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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