Environmental Information Disclosure And Asset Mispricing

Asset mispricing is one of the phenomena of capital market imbalance,and it is of great significance to explore the methods and paths to alleviate asset mispricing to promote the healthy development of capital market.Environmental information disclosure,as the main way for listed companies to transmit green information to the capital market,reflects important information including enterprise environmental risk,environmental performance and so on,which affects the business risk and profitability of enterprises.Especially in the background of ecological civilization construction in China,the environmental information of enterprises will be more closely related to their intrinsic values.Therefore,investors will pay attention to the environmental information disclosure of enterprises when making investment decisions.Previous studies have shown that environmental information disclosure can significantly affect information asymmetry and investors’ decision-making rationality,but it is impossible to reach a unanimous conclusion whether it is a positive impact or a negative impact.In view of this,it is not clear what impact environmental information disclosure will have on asset mispricing,and it is of theoretical significance and practical value to study the relationship between them.Based on the above background,this paper takes A-share listed companies in2009-2020 as the research object,and studies the relationship between environmental information disclosure and asset mispricing according to the theories of information asymmetry,signal transmission,bounded rationality of investors and principal-agent.The findings are as follows:(1)Environmental information disclosure can effectively alleviate asset mispricing,and the degree of mitigation will be enhanced with the improvement of disclosure quality;(2)Improving the transparency of company information and reducing the irrationality of investors are two ways for environmental information disclosure to alleviate asset mispricing;(3)There is a U-shaped relationship between the quantity of environmental information disclosure and the mispricing of assets;(4)Environmental information disclosure can effectively reduce the overvaluation of stock price,but it can not significantly increase the underestimation of stock price;(5)The relationship between environmental information disclosure and asset mispricing is significantly different under different internal characteristics and external environment.In the samples with heavy pollution industries,non-state-owned enterprises,strong environmental regulation and high attention of analysts,environmental information disclosure has a stronger mitigation effect on asset mispricing.This paper focuses on the relationship between environmental information disclosure and asset mispricing,and tests it from many angles.The theoretical contribution and practical significance lie in: not only enriching the economic consequences of environmental information disclosure from the perspective of capital market pricing efficiency,but also providing new empirical evidence for verifying the effectiveness of China’s environmental information disclosure policy;Moreover,from the perspective of non-financial information disclosure,the research on influencing factors and mechanism of asset mispricing is expanded,which provides new ideas for alleviating asset mispricing.