New path to green transformation: Exploring the impact of corporate governance on environmental information disclosure quality of new energy companies

An essential aspect of improving market openness, fostering investor trust, and allowing the establishment and implementation of sustainable development policies lies in enhancing the disclosure quality of new energy firms. This study examines the influence of corporate governance on the disclosure quality of new energy companies listed on the Chinese A-share market. The analysis is conducted using a two-way fixed-effects model and particularly focuses on the role of green transformation in this relationship. Research indicates that the use of corporate governance practices may significantly enhance the level of transparency in new energy enterprises. An examination of heterogeneity reveals that the impact of corporate governance on the quality of disclosure in new energy companies is more pronounced in organizations that have a greater size, fewer financial constraints, and are in different stages of development or decline. An examination of the mechanism demonstrates that corporate governance may facilitate the transition towards environmentally friendly practices and improve the amount, quality, and durability of green technology innovation. This, in turn, significantly enhances the quality of reported information. Furthermore, the threshold analysis reveals that under green transition values less than 0.2704, corporate governance hinders the disclosure quality of new energy companies. Conversely, corporate governance enhances the disclosure quality of new energy companies only when the green transition value exceeds 0.2704. The present research offers empirical findings about the influence of corporate governance on the quality of disclosure in new energy firms and provides theoretical support for the enhancement of corporate governance structure and the facilitation of the green transition.