UKM-Graduate School of Business
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.
School of Accounting and Auditing
Guangxi University of Finance and Economics
530003 Nanning, Guangxi, CHINA.
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.
UKM-Graduate School of Business
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.
Abstract
This study examines the effects of a heightened environmental disclosure regulation and institutional pressures on firms’ environmental information disclosure (EID). Using samples of 5,376 and 5,243 Chinese listed firms for the periods 2018–2023 and 2021–2023, this study finds that heightened disclosure regulation can significantly improve firm EID. Normative pressure has a positive impact, and mimetic pressure has a negative impact on EID following the disclosure regulation. The normative pressure effect is more significant among non-state-owned firms and firms in the eastern region. This study contributes to the literature on disclosure regulation and institutional pressures by focusing on a heightened disclosure regulation. The findings provide empirical evidence to policymakers regarding regulatory strength, policymaking, and subsidies. They also offer suggestions to firms and stakeholders regarding stakeholder participation and opinions.