The Impact of Information Disclosure on the Business Performance: A Case Study from Listed companies in Shanghai's Stock Market


Environmental Information Disclosure
Financial Performance, Environmental Performance
Corporate Social Responsibility


Purpose –This study examines both the direct and indirect relationships
between environmental information disclosures and environmental and financial
Design/Methodology/Approach – To achieve the purpose, the samples are
companies listed on the main stock of Shanghai in the manufacturing listed
companies. The sample of this study is 1,035-panel data from 2015 to 2019.
Moreover, the data are collected from the website of the National Certification and
Accreditation Regulatory Commission, Environmental reports are downloaded via the
Tide Information Network, relevant indicators of environmental information
disclosure level are accumulated manually through the search function, and samples
of environmental penalties suffered by enterprises are collected manually by means
of the environmental protection department website, enterprise website and Baidu
search engine.
Findings – On the basis of an examination employing a stakeholdertheoretical
approach, this paper reaches five major conclusions. This study concludes
that environmental disclosure information does not affect financial performance,
including asset return and profit margin. The financial performance, which is the
profit margin, does not impact environmental disclosure information. Additionally,
the third finding is that an environmental disclosure positively impacts environmental
performance. The fourth finding is that environmental disclosure does not affect the return on investment and return on income. This study's last finding is that financial
performances positively the consequences of environmental disclosure of
Practical implications – The new insights obtained in this study can assist in
overcoming the constraints of environmental disclosure information and
incorporating a much broader environmental disclosure information that can be
applied to environmental performance. Managers may understand investing funds in
companies with adequate environmental disclosure that enhances social
responsibility and returns.
Originality/value – This study examines both direct and indirect associations
between environmental disclosure information and financial performance in order to
expand the authors' understanding of the relationship between environmental
performance and financial performance, as its subject spans the fields of
environmental studies, which are rarely examined in prior research.

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