Original scientific paper
https://doi.org/10.1080/1331677X.2022.2072355
The relationship between environmental disclosure and financial performance: mediating effect of economic development and information penetration
Haixia Wu
Jianping Li
Abstract
What’s the relationship between environmental disclosure and
financial performance? To answer this question, our study focus
on the heavy polluting enterprises in China from 2008 to 2019 to
investigate the relationship between environmental disclosure
and financial performance as well as the mediating effect of provincial
level characteristics namely economic development and
information penetration using hierarchical linear model (HLM).
Findings show that there is positive relationship between both
mandatory environmental disclosure and voluntary environmental
disclosure and financial performance; economic development
positively relates to corporate financial performance, and it also
strengthens the relationship between environmental disclosure
and financial performance; information penetration positively
relates to corporate financial performance, but it weakens the
relationship between environmental disclosure and financial performance.
As time goes on, corporate financial performance will
significantly rise in general.
Keywords
Environmental disclosure; financial performance; economic development; information penetration; hierarchical linear modeling
Hrčak ID:
303723
URI
Publication date:
31.3.2023.
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