The Impact of Environmental Performance Rating and Disclosure : An Empirical Analysis of Perceptions by Polluting Firms’ Managers in China
Environmental performance rating and disclosure has emerged as a substitute or complement for traditional pollution regulation, especially in developing countries. Using data from China's Green Watch program, this study extends previous resear...
| Main Authors: | , , |
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100916094201 http://hdl.handle.net/10986/3903 |
| Summary: | Environmental performance rating and
disclosure has emerged as a substitute or complement for
traditional pollution regulation, especially in developing
countries. Using data from China's Green Watch program,
this study extends previous research on performance rating
and disclosure by considering firms' perceptions of
public and market responses to their ratings. The results
suggest that the Green Watch has significantly increased
market and stakeholder pressures on managers to improve
their firms environmental performance. More specifically,
controlling for the characteristics of locations, firms, and
individual managers, the analysis finds that firms with
better ratings perceive positive impacts on market
competitiveness, overall market value, and relationships
with different stakeholders, while the firms with bad
ratings are more likely to perceive deterioration. Among
these factors, managers perceive a more active role for
markets than for stakeholder relations. |
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