Strategic differences and corporate environmental disclosure quality: empirical evidence from heavily polluting industries in China

In this study, we empirically examine the relationship between strategic differences and the quality of corporate environmental information disclosure (QEID) using a sample of heavily polluting enterprises listed on China’s A-share market from 2013 to 2020. The empirical findings reveal that the relationship between strategic differences and the quality of corporate environmental information disclosure is “inverted U-shaped,” meaning that moderate strategic differences can enhance the quality of corporate environmental information disclosure, but excessive strategic differences may reduce it. A heterogeneity test indicates that this relationship is more pronounced in non-state-owned enterprises and those with lower internal-control capabilities. Furthermore, we find that environmental regulations and managerial ability amplify the “inverted U-shaped” relationship between strategic differences and the quality of corporate environmental information disclosure. These findings provide valuable insights that could enable firms to formulate strategic decisions and improve their systems for environmental information disclosure.