Biodiversity conservation and corporate environmental information disclosure: Evidence from a quasi-natural experiment in China

Abstract

This study examines the causal relationship between biodiversity conservation and corporate environmental information disclosure (EID) by leveraging the exogenous shock to neighboring urban firms in China brought about by the National Park Pilot (NPP) policy. Using a staggered difference-in-differences model, our findings demonstrate a significant causal increase in the EID levels of firms affected by the NPP policy. Further analysis reveals that the positive impact of this policy on corporate EID level is more pronounced among firms without green investors, having lower levels of retail investor interaction, and operating in non-heavily polluting industries. Overall, our study suggests that the implementation of the NPP policy enhances the market value of affected firms substantially.