How mayors’ promotion incentives shape corporate green innovation disclosure? Evidence from China’s New Environmental Protection Law

IF 7.5 1区经济学 Q1 BUSINESS, FINANCE

International Review of Financial Analysis Pub Date : 2025-04-05 DOI:10.1016/j.irfa.2025.104181

Jiaqi Li , Rui Sun , Mingduo Zhao

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引用次数: 0

Abstract

We investigate the impact of mayors’ promotion incentives on corporate green innovation disclosures following China’s implementation of the New Environmental Protection Law (NEPL) in 2015. The NEPL signaled a nationwide escalation in environmental regulations. Although firms governed by high-promotion-incentivized mayors disclosed fewer green innovations than firms governed by low-promotion-incentivized mayors, they increased their green innovation disclosures more significantly after the NEPL implementation. Our results capture the dynamics of corporate green innovation disclosure around NEPL implementation by measuring firm green innovation disclosure using neural network-based machine-learning techniques. Furthermore, this improvement in green innovation disclosure is more pronounced for firms in pollution-heavy industries, firms with political ties, and those facing high litigation risks. Lastly, environmental media coverage and investigation mechanisms amplify the positive effect of mayors’ promotion incentives on green innovation disclosures. Our study highlights the age factor in local politicians’ promotion incentives for corporate green innovation disclosure.

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我们研究了 2015 年中国实施《新环保法》（NEPL）后，市长晋升激励对企业绿色创新信息披露的影响。新环保法》标志着全国范围内环保法规的升级。虽然高晋升激励市长管辖下的企业披露的绿色创新信息少于低晋升激励市长管辖下的企业，但他们在《新环保法》实施后更显著地增加了绿色创新信息的披露。我们的研究结果利用基于神经网络的机器学习技术来衡量企业的绿色创新披露情况，从而捕捉到了《新环保法》实施前后企业绿色创新披露的动态变化。此外，污染严重行业的企业、有政治关系的企业和面临高诉讼风险的企业在绿色创新信息披露方面的改善更为明显。最后，环保媒体的报道和调查机制放大了市长推动激励对绿色创新信息披露的积极影响。我们的研究强调了地方政治家的年龄因素对企业绿色创新信息披露的促进作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Financial Analysis BUSINESS, FINANCE-

CiteScore

10.30

自引率

9.80%

发文量

366

期刊介绍： The International Review of Financial Analysis (IRFA) is an impartial refereed journal designed to serve as a platform for high-quality financial research. It welcomes a diverse range of financial research topics and maintains an unbiased selection process. While not limited to U.S.-centric subjects, IRFA, as its title suggests, is open to valuable research contributions from around the world.