Product Market Competition, Managerial Incentive And The Environmental Disclosure

With the development of economic, The public began to focus on environmental issues, especially its disclosure. Previous studies have shown that corporate governance mechanism affects the environmental information disclosure. Managerial incentive as a kind of important internal governance mechanism, will also affect the level of environmental information disclosure.Managerial incentive will affect their decision making(including environmental information disclosure decisions), and thus affect the environmental information disclosure level.In addition, the external stress factors will affect the level of environmental information disclosure, including the government, community, the public and the media, etc. But previous studies did not pay attention to the role of the market. Product market competition as an important external governance mechanism, need to pay more attention to. On the one hand,Product market competition will affect the environmental information disclosure, On the other hand,it also can produce the governance effect of the management, thus influence the environmental information disclosure level. Or it still need to cooperate with executive incentive.We want to research this problem deeply.When we study the product market competition, Managerial incentive effect on the environmental information disclosure level.We consider equity incentive and compensation incentive of executive. Based on the 2012-2014 Shanghai a-share manufacturing listed companies as samples, through empirical research we found that:(1) Product market competition is good for environmental information disclosure level.(2) Managerial shareholding and Managerial compensation incentive is good for environmental information disclosure level.(3) In the process of influence the environmental information disclosure level, product market competition and Managerial shareholding revealed a certain complementary relationship, product market competition and Managerial compensation also presents a complementary relationship. To sum up, both the product market competition and Managerial incentive can improve environmental information disclosure level. In addition, the product competition in the market to play a better role in governance management executives need to cooperate with company internal reasonable incentive mechanism. We finally put forward Suggestions, under the background of China’s system, to improve the level of environmental information disclosure of listed companies, it is necessary for us to break monopoly, establish fair and effective competition mechanism, at the same time, we also need to perfect the incentive mechanism of executives.