Research On The Environmental Regulation,Internal Governance And Environmental Information Disclosure

Along with the ecological environment pollution problem increasingly prominent,it pays more attention to environmental governance requirements by the government and society than before.As a result,a series of important ecological concepts have been developed like "green water and green mountains are golden mountains and silver mountains" by General Secretary Xi Jinping.From government and society point of view,they strive to solve the ecological problems caused by economy-oriented production model.In the long-term,the new theory concept is also an important foundation for sustainable economic development.In order to allocate reasonable environmental resources,maintain a clean-living environment,and achieve green production,balance environmental protection and economic development in a strategical way,the new environmental protection law and other regulations and policies came into being.However,there is the doubt about whether these rules and regulations can really encourage enterprises in an effective way to disclose better environmental information.As the vanguard of environmental governance,what is the social value of enterprises in the process of fulfilling environmental responsibility? Also,there is a big question mark about how to improve the enterprise’s own governance ability to keep pace with national environmental governance and improve the environmental information transparency level effectively.This paper explores the relationship between environmental regulation,internal governance,and environmental information disclosure from government and enterprises perspectives.Firstly,this paper tidies up the relevant docs,summarizes the existing research conclusions,and finds that these three points can be further studied through combining with the research of domestic and foreign scholars on environmental regulation,internal governance,and environmental information disclosure.Secondly,this paper analyzes the relevance of these three parts from theoretical side and triggers related research hypotheses based on social responsibility,environmental economics,legitimacy,and stakeholder related theories.Thirdly,this paper studies the relationship between environmental regulation and environmental information disclosure through analyzing the examples of A-share pharmaceutical manufacturing related companies in Shanghai and Shenzhen from 2015 to 2019 and selects four variables of Internal Governance:shareholders governance,directors governance,supervisors governance and management governance as regulatory variables,namely equity balance,board of directors size,board of supervisors size and separation of two duties.It explores the regulatory role of variables at all levels of internal governance and use principal component analysis to reduce the four levels of internal governance variables to a comprehensive variable for exploring the relationship between environmental regulation,internal governance and environmental information disclosure.Based on the study,it shows that there is a significant strong positive connection between environmental regulation and environmental information disclosure,and internal governance plays a significant positive regulatory role.Among them,board governance has a significant positive regulatory role,shareholder governance has a significant negative regulatory role,while the regulatory role of board of supervisors’ governance and management governance is not significant.Finally,taking all related analysis into consideration,the government should improve the construction of relevant systems,enhance the construction of supervision,enrich the channels of environmental regulation and supervision,and set up systematic incentive information disclosure system.The awareness of environmental responsibility should be enhanced and further improved in enterprises side.Enterprises need to consolidate the internal governance and management system,and create the concept of green and sustainable development.