The Pitfall of Selective Environmental Information Disclosure on Stock Price Crash Risk: Evidence From Polluting Listed Companies in China

Due to incomplete legal regulation, enterprises have the motive of selective environmental information disclosure (EID), and such strategy may result in stock price crash risk. In this study, EID scores China’s 1,010 polluting listed companies between 2007 2017 are first measured by employing text analysis approach. Subsequently, we empirically examine impacts corporate’s on The results indicate that has significantly increased their risk, rather than reducing it. Specifically, with lower efficiency, higher inefficient investment, degree government control, location marketization areas is more likely increase Additional analyses reveal China cannot reduce synchronization, which means useless, thus risk crash.