An Empirical Study on the Relationship between the Effectiveness of Internal Control and the Quality of Environmental Information Disclosure
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DOI: 10.23977/gefhr2021.005
Corresponding Author
Xiaohan Xie
ABSTRACT
Recently, the environmental situation is increasingly grave. People concern how to improve the quality of environmental information disclosure. There are two main factors affecting the disclosure of environmental information: one is internal management, the other is external pressure. Internal control is the supervision and management mechanism of enterprise internal operation, which may have a major influence on enterprise environmental information disclosure. The consistence of this relation under different enterprise properties deserves exploring. Therefore, based on the relevant theoretical research and in terms of internal control, we select 173 listed companies in the A-share heavy pollution industry from 2017 to 2019 as research samples. Empirical research results show that: The effectiveness of internal control and the quality of environmental information disclosure are positively related; the positive effect of internal control effectiveness on the quality of environmental information disclosure is more apparent in non-state enterprises than state-owned enterprises. Finally, some proposals are provided to ameliorate the quality of environmental information disclosure.
KEYWORDS
Heavily polluting listed companies, Effectiveness of internal control, Quality of environmental information disclosure