Do Institutional Cross‐Owners Obstruct Corporate Environmental Information Disclosure? Evidence From China

• DOI: 10.1111/jbfa.12872
• Publication Date: 2025-05-05T05:44:39Z
• Authors: Xin Cui; John W. Goodell; Jing Liao; Shouyu Yao; Xutang Liu
• Keywords: Environmental reporting

ABSTRACT This study examines the impact of common institutional ownership (CIO) on environmental information disclosure (EID) within China's unique context. We find that CIO significantly reduces EID in portfolio firms. To address potential endogeneity issues, we employ alternative measures, fixed effects models, entropy balancing, and instrumental variable estimation. Mechanism analysis reveals negative is primarily driven by their better access to preference for private information, as well concerns about litigation risks. Furthermore, this effect less pronounced heavily polluting industries, firms participating mandatory pilot programs, regions with higher local government attention greater QFII ownership. also investigate role state‐owned influencing only significant privately owned firms, not enterprises (SOEs). Additionally, influence weakens over time corporate intensifies. These findings highlight positive regulatory governmental efforts promoting EID.