Does Environmental Information Disclosure Increase the Firm Value and Investors' Confidence

Abstract

Use all A-share listed companies of main board market in 2012 as samples, this paper investigate the influence of environmental information disclosure behavior on the firm future market value and investors’ confidence in capital market. The research conclusion indicate that: (1) The listed companies’ environmental information disclosure behavior index and environmental information disclosure quality index are both significantly positive correlation with the company’s next seasonal added value; (2) The disclosure quality significantly positive correlation with investor confidence. In short, the high quality of disclosure of environmental information can significantly improve the company value and investors’ confidence in Chinese capital market.