Empirical Study On Impact Of Executive Turnover To Environmental Information Disclosure Level

Since the reform and opening up, China’s economy has achieved high growth forthirty years. But under the economic growth model of "high input, high emissions,high consumption and low efficiency", environmental problems like resource reductionand environmental pollution is appear which may damage ecological balance andhuman survival. Enterprise is the principal part of economic activity, it consumesnatural resources and pollutes environment when creating social wealth, so it is hisobligation to undertake environment responsibility. With increasing emphasis onenvironmental issues, society require enterprise to announce environmentalmanagement practices and outcomes, it is called environmental information disclosure.Executive decides environmental policy and environmental practice, playing animportant role in the process of environmental information disclosure, so executiveturnover will impact environmental information disclosure level. Based on view ofexecutive turnover, this paper research the influence of different executive changetypes, executive change in different nature enterprise and different executivesuccession types to environmental information disclosure level.In this paper, we use the methods of Propensity Score Matching(PSM) andDifference In Difference Model(DID)to analyze1750samples during2006to2010year which received from listed companies in Shanghai Stock Exchange and ShenzhenStock Exchange. We founded: different executive change types have different effect onenvironmental information disclosure level, mandatory executive change is positivelycorrelated with environmental information disclosure level, but non-mandatoryexecutives change is uncorrelated, mandatory executive change has a greater effect.Executive change in different nature enterprise have different effect on environmentalinformation disclosure level, executive change in state-controlled listed company ispositively correlated with environmental information disclosure level, but executivechange in private listed company is uncorrelated, executive change in state-controlled listed company has a greater effect.Different executive succession types have differenteffect on environmental information disclosure level, external executive succession ispositively correlated with environmental information disclosure level, but internalexecutive succession is uncorrelated, external executive succession has a greater effect.Long-term effect is greater than short-term effect when executive is externalsuccession, but they have no significant difference when executive is internalsuccession. Finally, we advance recommendations to improve environmentalinformation disclosure level and openness of executive turnover.