Geographical Distance and Environmental Information Disclosure: The Perspective of Public Pressure Transmission Efficiency

This paper examines how geographical distance influences managers' behavior around environmental disclosure from the perspective of public pressure transmission efficiency and how the internal and external factors curb the effect of geographical distance. We study Chinese manufacturing firms over a 6-year period (2009-2014) following the release of The Measures for Disclosure of Environmental Information (Trial). Research results show that (i) geographical distance can significantly weaken the transmission efficiency of public pressure and (ii) internal and external supervision factors can curb the negative effect of geographical distance on the transmission efficiency of public pressure.