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Article . 2025
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Article . 2025 . Peer-reviewed
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Article . 2025
License: CC BY
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Article . 2025
License: CC BY
Data sources: Datacite
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The Influence of Environmental Disclosure on Corporate Information Asymmetry

Authors: Yahaya, Onipe Adabenege;

The Influence of Environmental Disclosure on Corporate Information Asymmetry

Abstract

The increasing demand for corporate transparency has heightened the relevance of environmental disclosure in mitigating information asymmetry between firms and stakeholders. However, the extent to which environmental disclosure influences corporate information asymmetry remains an area of ongoing debate. This study investigates the relationship between environmental disclosure and corporate information asymmetry, addressing the critical research problem of whether enhanced environmental reporting reduces the gap in information accessibility among investors and other stakeholders. The study employs a quantitative research design, utilizing panel data regression analysis on a sample of publicly traded firms. Environmental disclosure is measured using a comprehensive disclosure index, while corporate information asymmetry is proxied by bid-ask spread and analyst forecast dispersion. The findings reveal a significant negative relationship between environmental disclosure and corporate information asymmetry, suggesting that firms with higher environmental disclosure experience lower information asymmetry. This study contributes to the literature by providing empirical evidence on the role of non-financial disclosure in reducing market inefficiencies. The originality of this study lies in its integration of environmental disclosure as a mechanism for improving corporate transparency, offering valuable insights for policymakers, regulators, and investors.

Related Organizations
Keywords

firm leverage, information asymmetry, corporate environmental disclosure, profitability, firm size

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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    2
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
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Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Top 10%
Average
Average
Green