Factors that Drive Chinese Listed Companies in Voluntary Disclosure of Environmental Information
- 3.5k Downloads
Based on the institutional theory, this article attempts to examine two consecutive questions regarding the impact of various factors on corporate decision in environmental information disclosure (EID): (1) whether or not to disclose; and (2) the level of disclosure. The relevance of these factors is empirically tested using data collected from publicly listed manufacturing companies from 2006 to 2008 in China. Some interesting findings appear. We find that firms that are state-owned, those that operate in environmentally sensitive industries, those having more industrial peers engaged in EID, and those with better reputation are more likely to disclose environmental information. When it comes to the content of EID, variables that attempt to capture external institutional pressures exhibit either no or weak explanatory power. Only the variable of organizational image and reputation is demonstrated to have a significant impact on both the act and the content of EID. This study provides a snapshot of the dialogues between constituencies in the organizational field and EID development.
KeywordsEnvironmental information disclosure Listed firms Environmental management China
We would like to thank two anonymous referees for very helpful suggestions that substantially improved this article. This study was supported by the National Natural Science Foundation of China (No. 71025006) and the Ministry of Education of China (20090073110029).
- CSMAR. (2009). China Accounting and Finance Research Center of the Hong Kong Polytechnic University and the Shenzhen GTI Financial Information Limited.Google Scholar
- DiMaggio, P. J., & Powell, W. W. (1991). Introduction. In W. W. Powell & P. J. DiMaggio (Eds.), The new institutionalism in organizational analysis (pp. 1–38). Chicago: University of Chicago Press.Google Scholar
- Fan, G., Wang, X. L., & Zhu, H. P. (2007). The marketization index in China. Beijing: Economy Science Press.Google Scholar
- Greenwood, R., & Hinings, C. R. (1996). Understanding radical organizational change: Bringing together the old and new institutionalism. Academy of Management Review, 21(4), 1022–1054.Google Scholar
- Guo, P. Y. (2005). Corporate Environmental Reporting and Disclosure in China, http://www.csr-asia.com/upload/environmentalreporting.pdf.
- Hill, C., & Jones, G. (2008). Essentials of strategic management. USA: Cengage Learning.Google Scholar
- Scott, W. R. (1995). Institutions and organizations. London: Sage.Google Scholar
- Scott, W. R. (2007). Institutional Theory: Contributing to a Theoretical Research Program. In Smith Ken G. & Hitt Michael A. (Eds.), Great minds in management: the process of theory development (pp. 460–484). Oxford, UK: Oxford University Press.Google Scholar
- Wooten, M., & Hoffman, A. (2008). Organizational fields: past, present and future. In R. Greenwood, C. Oliver, R. Suddaby, & K. Sahlin-Andersson (Eds.), Handbook of organizational institutionalism. London: Sage Publications Ltd.Google Scholar
- Xiao, H. (2006). Corporate environmental accounting and reporting in china: current status and the future. In: Schaltegger, S., Bennett, M. and Burritt, R. (Eds.), Sustainability Accounting and Reporting, 457–471.Google Scholar