A Study on the Degree of Corporate Environmental Information Disclosure Based on Local Hidden Debt Data from 2008-2022

The "bottom line of no systemic risk" focuses on local implicit debt risk. However, whether local implicit debt risk affects the environmental information disclosure of regional enterprises has not been fully tested. This paper looks at data from prefecture-level cities between 2008 and 2022. It creates a model to study local hidden debt risk and how companies disclose their environmental impact. To solve the endogeneity issue, it uses instrumental variables and the double difference method, while also controlling for fixed effects related to firms and industries during the testing. The results show that when the risk of local hidden debt goes up, companies in the eastern region, especially non-state-owned ones, tend to provide more information about their environmental practices. Also, the way analysts keep track of companies and how much stock institutional investors own can affect how companies reveal information about their environmental impact due to hidden local debt risks. Finally, based on the above conclusions, this paper provides relevant policies and recommendations for the authorities to realize the dual objectives of “risk prevention” and “stable growth.”.