The Research On Environmental Disclosure And Its Market Reaction Of Hisun Pharmaceutical Corporation

With the rapid development of science and economy,environmental resources are constantly being consumed.When the limited environmental resources can not meet the growing material needs of mankind,the strategy of sustainable development arises at the historic moment.Environmental information disclosure,is the enterprise who disclose the use of environmental resources,environmental protection behavior and contribution to the supervision department and social groups,and fulfill the environmental protection responsibility in the supervision of environmental protection laws and stakeholders,so as to achieve sustainable development.The researches on environmental disclosure by many scholars at home and abroad are mainly focused on the empirical research on the influencing factors of environmental disclosure.This paper will proceed from the interests of the enterprise,through the case analysis to study the quality level of environmental disclosure and the market reaction caused by environmental disclosure.We explore environmental disclosure having positive effects on the enterprise management and development,thus improving the initiative and enthusiasm of the enterprise to disclose environmental information.Then the enterprise will play subjective initiative and provide the higher quality level of environmental disclosure.This paper first introduces the status quo of environmental disclosure,lists the ways and methods of environmental disclosure,and reviews the research progress on influencing factors and roles of environmental disclosure both at home and abroad.Then the theory of environmental disclosure is summarized,which is the theoretical basis of the follow-up study.We selected annual reports,social responsibility reports,website announcements and media reports of Hisun Pharmaceutical Corporation from 2012 to 2016 as the research object,and makes detailed comparison and analysis of environmental disclosure quality.Then we use the event study method to research the market reaction caused by environmental disclosure of Hisun?We use abnormal return(AR)and cumulative abnormal return(CAR)in the event window as measures of the volatility of stock price,and analyze whether environmental disclosure of single event will cause large price movements of Hisun stock then lead to a significant market reaction through statistical significance tests.The results show that Chinese capital market has significantly positive or negative reactions on environmental disclosure of Hisun.On the one hand,it indicates that investors pay more attention to environmental disclosure of Hisun,on the other hand investors have strong awareness of environmental protection,and corporate environmental performance has a huge impact on stakeholders.