Corporate Environmental Disclosure And Stock Price Crash Risk

Stock price volatility is the stock market information that listed companies and their investors pay close attention to,and stock price crash is the most serious risk of price volatility.The collapse of stock price not only causes investors to suffer wealth losses,but also undermines their confidence in capital market.It also makes the market value of enterprises shrink rapidly,which is a major risk that all parties are most worried about.The occurrence environment of stock price crash is complex.It may be a collective crash under market risk or a stock crash under micro-impact.There are many theoretical hypotheses to explain the causes of stock price crash.One explanation based on information asymmetry theory is that the stock price crash originated from the deliberate concealment of negative information by management.The negative information accumulated over time to a certain extent and was released into the external market,which triggered a lot of investors to flee in a short time,resulting in stock price crash.By improving enterprise information transparency and reducing information asymmetry between internal and external,the risk of stock price crash can be effectively alleviated.This idea links information transmission with stock price crash,and brings the risk of stock price crash into the research field of information economics.A lot of scholars have proved the significant negative correlation between financial information transparency and the risk of stock price crash from the perspective of financial information,and the research from the perspective of non-financial information is not rich.With the complexity of social system,non-financial information contains more and more information,which can transmit some signals that financial information does not have.Considering the extensive advocacy of the public and the government on green economy and the strengthening of environmental protection supervision in recent years,environmental information disclosure,as an important non-financial information disclosure,has increasingly highlighted the value of stakeholders,so this paper studies the impact of environmental information disclosure on the risk of stock price crash.Based on 969 listed companies in heavy pollution industries in Shanghai and Shenzhen Ashares from 2013 to 2017,this paper explores the impact of environmental information disclosure on the risk of stock price crash.It studies the transparency of environmental information disclosure and the types of content of environmental information disclosure,and hypothesizes and tests their respective impact mechanisms.In addition,the impact of strengthening environmental supervision on the relationship between environmental information disclosure and stock price crash risk is also discussed.The results show that:(1)Increasing transparency of environmental information disclosure can significantly inhibit the risk of stock price crash.(2)The transparency of environmental information disclosure has a partial impact on the risk of stock price crash by affecting the synchronization of stock price.That is,the improvement of transparency of environmental information disclosure enhances the synchronization of stock price,and then partially inhibits the risk of stock price crash.(3)Positive environmental information disclosure can significantly inhibit the risk of stock price crash.(4)Positive environmental information disclosure has a partial impact on the risk of stock price crash by affecting the castrated trading volume,that is,positive environmental information can reduce the conflict and volatility of investor sentiment,which is manifested by the reduction of castrated trading volume,thereby reducing the risk of stock price crash.(5)The improvement of environmental protection supervision strengthens the negative relationship between environmental information disclosure and stock price collapse risk.The above conclusions are drawn for heavy pollution industry companies.