ABSTRACT

Heavy-polluting enterprises promote economic development while causing a certain degree of pollution to the environment, so they receive more attention from stakeholders in terms of corporate environmental information disclosure. As a new corporate management tool, environmental information disclosure has become an important way for enterprises to disclose their environmental performance and fulfill their environmental responsibilities.Presently, domestic and foreign scholars are still in the preliminary development stage for exploring the relationship between information efficiency and stock price synchronization. As a characteristic of information related to the Company’s basic value in the heavy pollution industry, the environmental information disclosure level may have a negative relationship with the synchronization of the Company’s individual stock price.Therefore, this paper takes the level of environmental information disclosure of listed companies in the heavy pollution industry as an entry point to explore the correlation between the level of environmental information disclosure and the synchronization of individual stock prices. It is found that companies are efficient in publicly disclosing environmental information to government and regulatory regulations, and this disclosed information reflects the environmental protection of the Company. And the capital market can reflect this information into the stock price, making the high and low changes in individual stock prices contain more company-specific information. The level of environmental information disclosure of listed companies in the heavy pollution industry significantly and negatively affects the synchronization of individual stock prices of companies, i.e., the publication of environmental information as the idiosyncratic information of listed companies in the heavy pollution industry helps to reduce the synchronization of individual stock prices of companies with the movement of the general market and improve the efficiency of capital market information and resource allocation.