Environmental information disclosure, market competition, and green transformation: evidence from Chinese heavily polluting listed companies

With the further deterioration of the global ecological environment and increased market competition, promoting the green transformation (GT) of heavily polluting companies with high consumption and emissions, and environmental damage has been an inevitable trend in green development. The public is becoming increasingly concerned about whether environmental information disclosure (EID) can drive the green transformation of heavy polluters. Based on the annual data of A-share listed companies with heavily pollution from 2011 to 2020, this study scores EID according to 30 environmental disclosure indexes (total 30 points) and investigates nonlinear regression to examine the impact of EID on GT and the moderating effect of market competition. Research has found a positive U-shaped relationship between EID and GT. When the level of EID exceeds 3 points (inflection point), it will have a positive impact on GT. Market competition flattens the positive U-shaped relationship, and the inflection point shifts to the right. The inflection point for EID rises from 3 to 4. The mean level of EID of heavy polluters is close to 7, which is low overall. However, most of the them have already exceeded the inflection point. This study provides new literature and perspectives on the nonlinear relationship between EID and GT. The findings provide intrinsic motivation for managers to take the initiative in EID and are also relevant for promoting the green transformation of heavy polluters, government regulation of the market, and sustainable human development.