Research On Relationship Among Environmental Disclosure, Environmental Performance, And Economic Performance

With the rising attention of environmental problem, now environmental disclosure and environmental performance of firm have become one research hotspot. Which relationships are among environmental disclosure, environmental performance, and economic performance; Wich factors have influenced them. This paper explores these problems analytically and empirically.Based on social responsibility theory, information asymmetry theory and so on, combing the research method and conclusion of former literature and the special research background in China, this paper develops our hypotheses and researches relationships among environmental disclosure, environmental performance, and economic performance by a simultaneous equations approach.Firstly, this paper examines the appropriateness of using an OLS regression analysis to estimate this system of equations by employing a Hausman test. This statistical test should detect the presence of any endogenous relations among our three dependent variables—environmental disclosure, environmental performance and economic performance. Secondly, 3SLS is employed to empirically research a sample comprised 261 listed companies. The results are summarized below: In the whole sample group, environmental performance has positive influence on economic performance; economic performance and environmental disclosure also have positive influences on environmental performance; the cost of environmental management is a significantly factor of economic performance and environmental performance; environmental exposure, environmental concern, and public visibility are significantly factors of environmental disclosure. In low ENVEXP sample group, there is a positively influence between environmental performance and economic performance mutually; environmental concern is a significantly factor of environmental disclosure. but in high ENVEXP sample group, both environmental performance and environmental disclosure have negative influences on economic performance; economic performance plays a negative role on environmental performance, and the role of environmental disclosure is positive; public visibility is the only significant factor of environmental disclosure. Finally, based on the front studies, this paper puts forward some advices that are able to improve environmental performance and disclosure of listed companies.