Environmental Information Disclosure and Firms' Green Total Factor Productivity: Evidence from New Ambient Air Quality Standards in China

Green total factor productivity (GTFP) is a key factor for achieving sustainable development and enhancing economic competitiveness. Environmental information disclosure plays a significant role in improving the corporate GTFP. Using A-share-listed company data in China from 2009 to 2019, this study employs the Ambient Air Quality Standards (GB3095-2012) promulgated by China in 2012 as a quasi-natural experiment. This study employs difference-in-differences (DID) to examine the impact of environmental information disclosure on corporate GTFP. The findings reveal that on average, environmental information disclosure positively affects firms' GTFP. Mechanism analyses show that environmental information disclosure promotes GTFP by increasing total corporate costs, alleviating corporate financing constraints, and promoting green technological innovation. Environmental information disclosure mainly affects non-state-owned smaller, and young enterprises. These conclusions provide theoretical support and empirical evidence for governments to leverage environmental information disclosure to promote green and sustainable development, thereby achieving high-quality economic growth.