Affiliated with RCfalse
Status即將出版Forthcoming
A Paradigm for Examining the Interplay of Environmental Investment, Environmental Disclosure and Firm Performance in China
Zhang, Ruopiao; Noronha, Carlos
2023-01
Source PublicationCorporate Resilience: Risk, Sustainability and Future Crises
Author of SourceCrowther, David and Seifi, Shahla
Publication PlaceNew York
PublisherSpringer
Abstract

In recent years, the Chinese government has been actively encouraging and supporting enterprises to invest in green practices such as energy conservation and emission reduction. Companies are implementing business programs and policies which emphasize investments in advanced environmental technology to differentiate themselves from competitors. This can be a way of exhibiting corporate social responsibility (CSR), which some authors refer to as ‘investment with values’. Consequently, this chapter intends to address these limitations in the literature by examining the interactive relationship between environmental investment and firm performance as well as the mediating role of environmental disclosure in China.

This study adopts two measurements of firm performance, namely, firm value and incremental goodwill. The former is measured by Tobin’s Q while the latter is defined as the surplus that can be attributed to favorable shareholder perceptions of the company’s environmental positioning. Structural equation modeling (SEM) is used to investigate the interrelationships between the variables of interest for a sample of A share-listed companies in China from 2008-2020 with a sample size of 30,048 firm years.

Consequently, this chapter intends to address these limitations in the literature by examining the interactive relationship between environmental investment and firm performance as well as the mediating role of environmental disclosure in China.

This study adopts two measurements of firm performance, namely, firm value and incremental goodwill. The former is measured by Tobin’s Q while the latter is defined as the surplus that can be attributed to favorable shareholder perceptions of the company’s environmental positioning. Structural equation modeling (SEM) is used to investigate the interrelationships between the variables of interest for a sample of A share-listed companies in China. The findings of this study provide critical implications for several stakeholders. If environmental performance (environmental investment and environmental disclosure) is hypothesized to affect the firm’s value, companies may take proactive measures to avert potential environmental violations. Investors may trade based on the evidence as to how that firm value and its goodwill from acquisition will be affected by news of its environmental performance.

KeywordEnvironmental Investment Environmental Disclosure Firm Performance China Green
Document TypeBook chapter
CollectionDEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
Affiliation1.Macau University of Science and Technology
2.University of Macau
Recommended Citation
GB/T 7714
Zhang, Ruopiao,Noronha, Carlos. A Paradigm for Examining the Interplay of Environmental Investment, Environmental Disclosure and Firm Performance in China. New York:Springer,2023.
APA Zhang, Ruopiao,&Noronha, Carlos.(2023).A Paradigm for Examining the Interplay of Environmental Investment, Environmental Disclosure and Firm Performance in China.Corporate Resilience: Risk, Sustainability and Future Crises.
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