Does environmental justice influence corporate climate risk disclosures? Evidence from the environmental court
摘要
This paper examines the impact of environmental justice on corporate climate risk disclosure. Using panel data of Chinese listed companies from 2012 to 2022, we treat the establishment of environmental courts as a quasi-natural experiment and employ a multi-period difference-in-differences (DID) approach to estimate its effect on firms’ climate risk disclosure. The results show that the establishment of environmental courts significantly promotes corporate climate risk disclosure, and the findings remain robust after a series of tests, including parallel trend tests, placebo tests, and propensity score matching combined with DID. Mechanism analyses from a governance perspective indicate that the establishment of environmental courts attracts long-term institutional investors, strengthening monitoring and governance and thereby promoting firms’ climate risk disclosure; however, this effect is weakened when managerial ownership is high. From a reputation perspective, environmental courts as a formal institutional arrangement exhibit a substitutive relationship with informal regulation in the form of social reputation, such that the positive impact of environmental courts on climate risk disclosure becomes weaker for firms with higher social reputation. Further heterogeneity analyses reveal that the promoting effect of environmental courts is more pronounced among firms with lower accounting information quality, lower financing constraints, and a lower proportion of female executives. Overall, this study enriches the literature on the impact of formal environmental regulation on corporate climate-related information disclosure and provides new insights into the governance and reputation channels through which institutional arrangements influence corporate behavior.