Managerial Power, Board Characteristics And Environmental Information Disclosure

Since twenty-first Century,Chinese economy have driven into the fast lane of development,the economy achieved a qualitative leap.However,just as most western countries,China's economic development is also at the expense of environmental pollution.Words like "haze","debris flow" and so on,can be heard frequently.But fortunately,environmental pollution has been taken into consideration by the government and etc.In the speech delivered at the Steiner Zal University of Kazakhstan Nazarbayev in 2013,the general secretary Xi Jinping made it clear that we should get hold of not only gold and silver,but also beautiful natural environment,beautiful scenery is wealth,which express the firm determination of the party and the government to promote the construction of ecological civilization and the environmental protection.In such a background,as one of the chief culprits of environmental pollution,the heavy polluting enterprises occupies a place in the competitive economic environment successfully only to conform to the trend of the times.The board of directors,as a permanent institution of shareholders,represents the interests of shareholders.Strengthening the governance of the board of directors is conducive for shareholders to strengthening the control of decision-making in company.But does the governance of board have the same impact on the decision of environmental information disclosure? In addition,because of the separation of the right of ownership and control does exist in the modern enterprise's management.Managers are authorized to operate activities of enterprises.However,due to the existence of asymmetric information,the power of manager expand,as a result,the management has the power to make decision without authorization.But the managements have short-sighted shortcomings because they are employed for a limited period.However,the investment on environmental protection is a long-term investment.In such a background,does the expanded power of the management would suppress the board of directors in environmental information disclosure?This paper adopts the method of normative research and empirical research to discuss the above problems.Through combing domestic and overseas on the three concepts and the relationship,this paper puts forward to the research hypothesis based on the agency theory,power management theory and other related theories.This paper selects 2011-2015 of heavy polluting company listed on the Shanghai Stock Exchange A-share market as the sample data for this study.Then the author built an empirical model,and conduct tests through stepwise regression.This paper finally draws the following conclusions after correlation studies: first the size of the board of directors,shareholding ratio and the board independence will have a positive impact on environmental information disclosure.Secondly the management power has a certain regulating effect,the size of the board of directors,shareholding ratio and the board independence do suppressed by the management power.According to the results of this study,this thesis puts forward four suggestions.Firstly,we should improve the relevant laws and regulations of environmental information disclosure,on one hand the relevant departments should makes the laws and regulations more comprehensive,on the other hand they should strengthen the compliance of these laws and regulations,such as training the relevant person who is responsible for the disclosure,keep he or she is familiar with the laws or regulations;secondly,the government should strengthen the publicity of environmental information disclosure,make the public known the importance and the necessity of environmental disclosure;Thirdly,enterprises should improve the company's internal governance mechanism,especially the governance of the board of directors to keep the company in control,such as expand board size,build incentive mechanism for board,increase the number of independent director;finally,shareholders should perfecting the construction internal control system,strengthen restriction and supervision of management power.There are two innovation points.This paper presents a new perspective on the study of the management power.Not only the management will directly affect the company's compensation policy,investment efficiency,but also affect the functions of the board of company.This paper enriches the research about the management power;Innovation on research content.The management power,board characteristics and environmental information disclosure were included in the same framework,the study will more comprehensive in analyzing the influence of Board Governance on environmental information disclosure.