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Enterprise's R&D and Innovation Management

The Impact of Environmental Information Disclosure on Corpo⁃ rate Innovation Sustainability within the "Dual Carbon" Context 

Wu Xinke, Du Jinzhu, Sun Mengyi

(Fanli Business School, Nanyang Institute of Technology, Nanyang 473004, China)

Abstract: Under the current development of China's carbon information disclosure system, enhancing corporate innovation sustainability not only facilitates the transformation and upgrade from high carbon growth to green development for enterprises but also plays a significant role in promoting China's high-quality economic growth and Chinese-style modern development. Based on this background, this study takes listed companies from the Shanghai and Shenzhen Ashares from 2011 to 2020 as the research subjects. It considers the "information effect" and "reputation effect" produced by environmental information disclosure, profoundly exploring the relationship between environmental information disclosure and corporate innovation sustainabil⁃ ity and further analyzing the situational effects of management incentives and property rights het⁃ erogeneity in this relationship. The empirical results indicate that environmental information dis⁃ closure can enhance corporate innovation sustainability by alleviating the two kinds of agency problems and improving financing constraints, implying the dominant role of the "information ef⁃ fect". The results of robustness examination further demonstrate that as the quality of environ⁃ mental information disclosure continually improves, corporate innovation sustainability also con⁃ tinuously elevates, in addition, some differences in property rights heterogeneity show variations in the impact on environmental information disclosure and corporate innovation sustainability. This positive effect is more pronounced in non-state-owned enterprises. The reason is that nonstateowned enterprises face political disadvantages and financial constraints, making them more willing to undertake innovative risk investment projects and enhance risk tolerance in or⁃ der to improve their market competitiveness. For state-owned enterprises, their operational man⁃ agement and system are relatively mature,so their innovative drives is lacking. Concurrently, management incentives show a positive correlation with environmental information disclosure and innovativeness level. Hence, management incentives can significantly positively regulate the relationship between environmental information disclosure and innovation sustainability. As an effective corporate governance tool, management incentives contribute to reducing corporate agency costs, elevating corporate environment information disclosure, and thus enhancing corpo⁃ rate innovation sustainability. Based on the conclusions above, relevant government departments should establish and improve the environmental information disclosure system, refine the infor⁃ mation disclosure regulatory system for listed companies, strengthen incentives for companies to disclose social responsibility performance information, and encourage enterprises to elevate the quality and level of environmental information disclosure. In addition, companies should actively undertake more social responsibilities and timely disclose corporate social responsibility perfor⁃ mance information, so as to enable enterprises to gain more innovative financial support and sub⁃ sequently achieve continuous improvement in innovation sustainability levels.

Key words: environmental information disclosure; innovation sustainability; information ef⁃ fect; reputation effect; management incentives