Green Commitment and Stock Price Crash Risk

Environmental, social, and governance information disclosure and stock price crash risk: Evidence from Chinese listed companies

“… Jahmane and Brahim (2020) and Lemma et al (2021) found that the “green” behavior of enterprises can send positive signals, form the reputation capital of enterprises, ease the financing constraints of enterprises, and then obtain economic returns. Some scholars have also found that even if a company’s “green” behavior does not yield financial returns immediately ( Wan et al, 2021 ), the accumulated reputational capital can significantly improve the long-term competitiveness of the company and improve the stability of stock prices ( Dhaliwal et al, 2011 ; Liu et al, 2022 ).…”

“…However, since it is voluntary to disclose ESG information in China until now, and there is no standard information disclosure regulation, the management is given much freedom to choose the ESG information disclosure strategy. Based on the information obfuscation hypothesis, the managers who have the motivation to benefit themselves are willing to use ESG information disclosure as a self-interested tool to conceal negative news about the company, such as poor financial performance and unethical behavior ( Kim et al, 2014 ; Liu et al, 2022 ). Therefore, whether corporate ESG information disclosure can genuinely improve the information quality of the capital market and optimize resource allocation needs further discussion.…”

“…At present, scholars have found that financial reporting opacity ( Hutton et al, 2009 ), primary shareholder control rights-cash flow rights separation ( Hong et al, 2017 ), exploratory innovation strategy ( Jia, 2018 ), and powerful CEOs ( Al Mamun et al, 2020 ) have a positive impact on stock price crash risk, while female CFOs ( Li and Zeng, 2019 ), internet searching ( Xu et al, 2021 ), green Commitment ( Liu et al, 2022 ), and bank deregulation ( Dang et al, 2022 ) negatively affect stock price crash risk. Based on the strategic development need of China, this article explores whether and how to optimize the efficiency of resource allocation from the perspective of the stock price collapse, which is of great practical significance.…”

Green Credit Policy and Corporate Stock Price Crash Risk: Evidence From China

“…Prior research shows that GCP incentivizes heavy-polluting firms to innovate and reform ( Wang and Wang, 2021 ), as well as improve productivity ( Zhang, 2021 ) and resource allocation ( Zhou et al, 2021 ). From the perspective of corporate behavior, Liu et al (2021) find that “green” commitment lowers a firm’s stock price crash risk. In terms of green credit regulation, Fan et al (2021) discover that GCP has a significantly positive impact on the loan interest rates, loan size and financing costs of non-heavy-polluting firms, but a significantly negative impact on heavy-polluting firms.…”

Succession intention and environmental investment: The moderating role of social status

“…Green development has become an important component of global environmental governance ( Maggioni and Santangelo, 2017 ). As the major contributor to environmental pollution ( Huang and Lei, 2020 ; Bendell, 2021 ), firms’ efforts in pollution control are important to the transition towards a “green economy” ( Liu et al, 2022 ; Tian et al, 2022b ). Most environmental research focuses on listed firms and is concerned with the influence of environmental regulations and governance on a firm’s environmental investment.…”