The Company's External Supervision And Internal Governance Disclosures Affect The Level Of Their Environmental Information

With the increasing environmental issues emerge and the call for environmentalprotection by public increasingly strong, the18thNational Congress of The CPCformally presented to build a socialist ecological civilization as our new developmentrequirements to achieve the Beautiful China’s goal. The consumption of resources,expense of the environment model of economic development in the past has graduallybeen replaced by the Recycling Economy or Low-carbon Economy. Environmentalissues have become a common problem which the people all over the world shouldface and pay attention to. Under this background, this paper will study the internal andexternal factors which affect the company’s environmental disclosure level by thetheoretical analysis and empirical method.From the perspective of theoretical analysis, at first, according to the theory oflegitimacy as well as combined with foreign related research and practice experience,this paper comb and analyze our government effort on environmental issues and theenvironmental disclosure legislative situation of our country, especially on the aspectsof environmental information disclosure and the supervision of enterpriseenvironment management. Secondly, from the perspective of corporate governance,combined with the stakeholder theory and the sustainable development problem ofenterprises, this paper expounded the necessity and importance of corporateenvironmental disclosure, in addition, analyze the high quality environmentalinformation will have a positive effect on enterprises based on the theory of corporategovernance.This paper would do empirical study on617listed companies which select fromsixteen categories of heavily polluting industries, after analyze the environmentaldisclosure of these corporate by its2011\2012annual financial report. The results showed that government regulation and legal norms as the representative of theexternal pressure would have a significant role in promoting the company’senvironmental disclosure level. In terms of corporate internal governance factors, thestate-owned listed company and the corporate which have more supervisors will tendto have a higher level of environmental disclosure. Positive test results verify thetheoretical analysis basically carried out in this paper.By studying both theoretical and empirical, I believe that the environment is atypical problem of externalities, which produces mainly due to the process ofenterprise’s production and operation of resource consumption and pollutionemissions, but the consequences of such behavior has become the problem which thewhole society must face and solve. There is no doubt that an effective way to solvethe problem of externalities mainly lays external governance, which is consistent withthe conclusions of this article. We should as soon as possible to improve the relevantenvironmental legislation system and rules, strengthen government regulation, toeliminate "security achievements, promote the economy" narrow local protectionism,etc., at the same time we should further strengthen the company’s own awareness ofenvironmental issues, and improve the internal environmental supervision, makeenvironmental problems become the common goal of our national, social andenterprise. All about these are also the practical and theoretical significance of thispaper.