The Market Effects Of Environmental Information Disclosure In Textile Industry

In recent years, as the country continues to pay attention to environmental protection, the government began to strengthen norms and regulations on textile industry. In the face of enormous pressure on the environment, the contradiction of the textile industry between economic development and environmental protection is more obvious. The key point to maximize the enterprise development is the implementation of industrial pollution control to achieve economic, social and environmental benefits. Environmental information disclosure is an important part of environmental accounting, which enables companies to understand the needs of enterprise. External information activities related to the environment is conducive not only for public supervision of whether enterprises fulfill their environmental responsibility but also for environmentally conscious companies to establish a good green image. This article will focus on the textile industry research to study the impact of environmental information disclosure of listed companies as well as the extent of disclosure of the status of the stock market to examine whether the present stage of China’s listed companies of disclosure environmental information can bring added value to listed companies.Based on the Environmental Information Disclosure and market effects on the relevant literature review, this paper starts with the theoretical analysis of adverse selection model, moral hazard model, stakeholder theory and social responsibility theory for corporate environmental information disclosure mechanism; again, from the point view of information disclosure as well as environmental protection, this paper studies institutional policy background; then, focusing on textile industry, this paper selected 2012--2014 Shanghai and Shenzhen 37 listed companies as samples and puts forward hypotheses, builds models, and defines variables. In addition, this paper gives descriptive and correlation analysis of environmental information disclosure with all vairables, summing up its relationship with stock liquid and volatity, and further verify their impacts through regression analysis; Finally, put forward optimization recommendations based on research findings.Based on empirical research this thesis draws the following conclusion:(1) the level of environmental information disclosure of the textile industry continues to improve and independent disclosure of social responsibility reports or sustainability reports of enterprises continue to increase, but the quality is still low. (2) There is a positive relationship between environmental information disclosure and volatility of share price in the short term in textile corporate. Through environmental disclosure, the enterprise will transfer signal to stakeholders who will respond, as a result of which firms expect to increase cash flow. (3) There is a weak positive correlation between environmental information disclosure and stock liquidity. Shareholders and management have a tendency to disclose positive environmental information, deliberately concealing negative adverse environmental information in order to maintain public image and investment value, and cause the information distortion; at the same time, China’s capital market is semi-strong which lead to response time lag of market information disclosure.