Research On The Relationship Between Environmental Disclosure And Overflow Effect Under The Circumstance Of Environmental Accident

Currently, environmental accident still happened frequently, while it caused harmful influence to the residents, they also bring negative effect on themselves. For the purpose of supervise the environmental problem of the environmentally sensitive industry and meet the information demands of the investors, the supervision department have tightened the regulation about the environmental information disclosure, therefore, the quality of the environmental disclosure have improved a lot and the effect of the environmental disclosure is starting to work. Some scholars have found that there is a negative overflow effect in the industry and they would disclose more environmental information after the accident, so, would the environmental disclosure ease this negative effect? Whether the more bigger the negative effect, the more environmental information they would disclose in the next year? This paper try to research the motivation and the value of the environmental information.This research is based on the background of the environmental accident of the Sinopec and China Petrol and we selected the industry they belong to and the related industry, we manually collected the environmental disclosure data and use the event study method, t-test and regression analysis. Our research indicated that, there is a negative overflow effect in the related industry, but the more environmental information they disclosed in the previous year, the smaller the negative effect is. Besides, the related industry will disclose more information in the next year,. However, we couldn't find the relationship between the overflow effect and the change of the environmental information.Finally, we make some suggestions according to the findings, for example, the industry could found the environmental initiatives and use the internal rewards and punishment to avoid the environmental accident. Besides, the industry could improve its environmental disclosure previous to the accident other than after the accident and ease the potential negative effect.