Does the ministry of environmental protection’s random inspection system improve corporate environmental information disclosure? A quasi-natural experiment from China
As a novel policy, the Ministry of Environmental Protection’s random inspection system (MRIS) is an innovation in the field of environmental enforcement. A growing number of studies have associated corporate environmental information disclosure (CEID) with environmental responsibilities, but they ha...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
IOP Publishing
2025-01-01
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| Series: | Environmental Research Communications |
| Subjects: | |
| Online Access: | https://doi.org/10.1088/2515-7620/addea8 |
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| Summary: | As a novel policy, the Ministry of Environmental Protection’s random inspection system (MRIS) is an innovation in the field of environmental enforcement. A growing number of studies have associated corporate environmental information disclosure (CEID) with environmental responsibilities, but they have failed to discuss the relationship between the MRIS and CEID. We construct a multi-period difference-in-differences (DID) model combined with the standard ordinary least squares (OLS) method to investigate the impact of the MRIS on CEID. It finds that the MRIS significantly improves the quality of CEID. Importantly, our examination of the mediating mechanism reveals that the MRIS promotes CEID through enhancing the government’s environmental attention and increasing the environmental compliance pressure of corporate. Notably, the heterogeneity analysis from the perspective of ownership attribute presents that the relationship between the MRIS and CEID is clearer in non-state-owned enterprises than in state-owned enterprises. Additional exploration demonstrates that the implementation of the MRIS enhances the financial performance of corporate by improving the CEID quality, but fails to increase the market value through this channel. Therefore, we recommend that the government proactively implements the MRIS by moderately increasing the random inspection rate. Meanwhile, it is imperative to build a more uniform and stricter CEID system as soon as possible by setting specific and quantitative rules and standards. |
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| ISSN: | 2515-7620 |