Impact of environmental information disclosure on green finance development: empirical evidence from China.

Information asymmetry is a prominent problem in the advancement of green finance, and because of the difficulty of capturing "information", research on the role of information factors in green finance has been limited. In this study, a quasi-natural experiment based on China's environmental information disclosure system in 2008 is conducted to investigate the effect of information factors on green finance. Using the panel datasets of China's 107 cities and 173 environmental protection firms from 2005 to 2015, this study, respectively, adopts the difference-in-difference (DID) method and triple difference (DDD) method to examine the effect of environmental information disclosure on regional green finance development and the utilization efficiency of green funds. According to the results, public disclosure of environmental information can promote both regional green finance development and the efficient utilization of green funds by energy-based environmental protection enterprises. Heterogeneity analysis at the regional level suggests that environmental information disclosure has a greater impact on green finance in regions with lower resource endowments and stronger environmental regulations. Heterogeneity analysis at enterprise level shows that compared to state-owned energy-based environmental firms, the efficiency of green capital utilization of non-state-owned energy-based environmental firms is more sensitive to the disclosure of environmental information. The findings of this paper provide a theoretical and empirical foundation for developing green finance. [ABSTRACT FROM AUTHOR]