Corporate Environmental Information Disclosure And Stock Price Crash Risk

Stock price fluctuation is the stock market information closely watched by listed companies and thousands of investors,which affects the nerves of market participants,and stock price crash risk is the most serious fluctuation risk.The rapid development of China’s capital market in the past few decades is obvious to all,However,during this period many problems have emerged,and the stock price collapse caused by the stock price crash risk is also emerging one after another.For example,in 2015,there was a crash in China’s stock market,and thousands of shares fell by the limit.On October 29,2018,the stock of Kweichow Moutai Company Limited fell to the limit when the market opened,and in May 2020,the stock of Guangdong Boxin Investment Holding Company Limited fell to the limit eight times in a row and other stock price crash phenomena are still vivid.While causing huge losses to investors and undermining investment confidence,it also hinders China’s prevention of financial risks and maintenance of financial market order.Therefore,the research based on the stock price crash risk has always been the research hotspot of related disciplines.For the origin of crash risk,one of the more recognized explanations in the academic circles is based on the theory of information asymmetry and agency theory,which holds that the stock price crash risk comes from the deliberate concealment of negative information by the management.When the negative information is accumulated to a certain extent and released to the market,it will cause market panic,investors escape,and then lead to the sharp decline of stock price.Based on this,by improving the level of information disclosure and reducing the degree of information asymmetry,we can significantly lower the crash risk.At present,a large number of scholars have proved from the perspective of financial information that improving the level of financial information disclosure can significantly reduce the stock price crash risk.With the complexity of social system,non-financial information also contains some signals that financial information does not have.Combined with the promulgation of the new environmental protection law and other regulatory regulations in recent years,as well as the core viewpoints of "building a beautiful China" and "the green water and green mountains are golden mountains and silver mountains",environmental protection has received more and more attention from the government,and it occupies an increasingly important position in the people’s demand for a better life.Correspondingly,the regulatory authorities and the public will also give higher requirements to the environmental performance of enterprises and the fulfillment of environmental protection responsibilities with more attention,environmental information and corporate value will also be more relevant.Follw this idea,this paper discussed whether environmental information disclosure can significantly influence stock price crash risk,if so,what is its path of effect?.Firstly,on the basis of summarizing previous researches on environmental information disclosure and stock price crash risk,combined with relevant classic economic theories,this paper theoretically analyzes the research topic and puts forward relevant assumptions.Then,an empirical test was carried out on the relationship between environmental information disclosure and stock price crash risk,the moderating effect of analyst attention and media attention on the relationship between them,and the impact path.Finally,the research shows that for China’s heavily polluting enterprises:(1)the improvement of environmental information disclosure level can significantly reduce the stock price crash risk.(2)The negative correlation between the level of enterprise environmental information disclosure and the stock price crash risk weakens with the increase of analysts’ and media attention.(3)There is an information path between the level of enterprise environmental information disclosure and the stock price crash risk.