Does green intellectual capital improve environmental, social and governance information disclosure? Textual analysis evidence from Chinese A-listed businesses

Purpose This study highlights the crucial importance of effectively managing intangible resources, particularly green intellectual capital (GIC), in enhancing environmental, social and governance (ESG) information disclosure. GIC holds the potential to foster innovation, transparency, and stakeholder trust. Its actual impact is often constrained by challenges such as regulatory gaps, greenwashing and limited stakeholder enforcement, especially in emerging economies such as China. Drawing on stakeholder, resource-based and knowledge-based theories, this study examines how GIC and its three dimensions influence ESG disclosure practices and contribute to a competitive advantage. Furthermore, it examines the moderating role of family ownership in influencing the strength of the GIC-ESG relationship. Design/methodology/approach This study uses textual analysis to construct the GIC and its components for Chinese A-listed firms. The data is sourced from the Bloomberg and China Stock Market and Accounting Research databases. The sample includes annual data of Chinese A-listed firms from 2010 to 2023, following the 2008 financial crisis. Analyzing 40,357 observations, the fixed-effects regression model is used to obtain baseline results. A series of tests is employed to check robustness and endogeneity issues. Python and Stata software were used for analysis. Findings The findings reveal that GIC and its components positively impact ESG disclosure. Additionally, family ownership strengthens the effects of GIC dimensions on the ESG disclosure. The results are robust to robustness analyses, propensity score matching, instrumental variable analysis and the generalized method of moments. Practical implications The findings highlight the importance of GIC in enhancing ESG disclosures and providing firms with strategies to improve stakeholder engagement and competitive advantage. Social implications This research underscores the need for policies incorporating GIC into ESG frameworks, promoting sustainable practices, fostering transparency, enhancing long-term quality of life and contributing to societal welfare. Originality/value This study contributes to the development of the measure of GIC for Chinese A-listed firms through a novel approach of textual analysis. It is the first study to analyze the impact of GIC on ESG disclosure, including the moderating role of family ownership.