Research on the Impact of Excessive Environmental Information Disclosure by Enterprises on Stock Price Crash

Research on the Impact of Excessive Environmental Information Disclosure by Enterprises on Stock Price Crash | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Research on the Impact of Excessive Environmental Information Disclosure by Enterprises on Stock Price Crash Guoping Dong, Guifen Ma This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5987081/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper investigates the phenomenon of excessive environmental information disclosure by A-share listed companies in China. Using a sample of A-share listed companies that published corporate social responsibility (CSR) reports between 2015 and 2023, the study first applies the threshold effect and quantile regression models to identify embellishments in the environmental textual information disclosed by these firms. Subsequently, a panel fixed effects model is employed to examine the potential impact of excessive environmental information disclosure on stock price crashes. The results reveal that the environmental textual information disclosed by companies contains embellishments beyond substantive environmental content, indicating the presence of greenwashing. This behavior amplifies the risk of stock price crashes, with a more pronounced effect in the manufacturing sector. The underlying mechanism is that excessive textual information disclosure diminishes the quality and transparency of the disclosed information, thus fostering irrational investment behaviors among investors. Additionally, the study finds that effective environmental textual information disclosure can attenuate the likelihood of stock price crashes. Further analysis suggests that reducing ownership concentration, increasing managerial equity ownership, and enhancing the role of independent directors in corporate governance can significantly improve the quality of environmental information disclosure and curb excessive environmental information embellishment. This paper provides new insights into the analysis of environmental textual information disclosure and offers practical implications for guiding investors toward more rational investment decisions. Excessive environmental information disclosure Effective environmental information disclosure Stock price crash Information asymmetry Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-5987081","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":414242339,"identity":"e959c8e5-ed68-4047-a031-c3a3db7766d9","order_by":0,"name":"Guoping Dong","email":"","orcid":"","institution":"Guangzhou Huashang College","correspondingAuthor":false,"prefix":"","firstName":"Guoping","middleName":"","lastName":"Dong","suffix":""},{"id":414242340,"identity":"c5d5e130-52e5-4eb0-b693-8fd9cafefe61","order_by":1,"name":"Guifen Ma","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA7UlEQVRIiWNgGAWjYLCCBBsGBjb25gMGHwxs7IjUksbAwMdzLKFwRkFaMpHWALXISeQYfOb5cIixgZBi3fbj1yQeJNjksUmkJW62MTjAzMB++OgGfFrMzuSUSSQkpBWz8Tw+bJxjcIePgSct7QZeLQdy0iQSfxxObGNPSwNqecbMIMFjhl/L+TdpQFv+J7Yx5Jj/tjA4zNhAUMuN9GNALQcS2zhyDIwZiNPyhtkiISE5sQ0YyIY9BmnJbAT9cj794c0fCXaJ89uBUfnjj40dP/vhY3i1MDDwGKDy2fArBwH2B4TVjIJRMApGwcgGAGKFT4Fx+7X2AAAAAElFTkSuQmCC","orcid":"","institution":"Guangzhou Huashang College","correspondingAuthor":true,"prefix":"","firstName":"Guifen","middleName":"","lastName":"Ma","suffix":""}],"badges":[],"createdAt":"2025-02-08 10:23:12","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-5987081/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-5987081/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":76789347,"identity":"6f908661-58f6-47fd-95b3-6cc149473137","added_by":"auto","created_at":"2025-02-20 19:35:45","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":378348,"visible":true,"origin":"","legend":"","description":"","filename":"ResearchontheImpactofExcessiveEnvironmentalInformationDisclosurebyEnterprisesonStockPriceCrash.pdf","url":"https://assets-eu.researchsquare.com/files/rs-5987081/v1_covered_76f5e04b-483e-4bef-820d-88ce61f1f70f.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Research on the Impact of Excessive Environmental Information Disclosure by Enterprises on Stock Price Crash","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Excessive environmental information disclosure, Effective environmental information disclosure, Stock price crash, Information asymmetry","lastPublishedDoi":"10.21203/rs.3.rs-5987081/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-5987081/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"This paper investigates the phenomenon of excessive environmental information disclosure by A-share listed companies in China. 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