2.1 Review of the literature
2.1.1 Relevant studies on environmental information disclosure
Environmental information disclosure is a form of environmental regulation that guides the public to participate in environmental governance and supervision. It aims to break the dilemma of environmental pollution and low efficiency in green development, ultimately achieving improvement in business environmental performance (Lee, 2010) [4].It has become the third form of environmental regulation after command-and-control regulation(WANG et al.,2021)[5]and emissions trading(FENG et al.,2021)[6].Bowen et al. (2020)[7]classified information disclosure-based environmental regulation into various categories based on different characteristics, dividing it into mandatory and voluntary environmental information disclosure according to whether the driving force of information disclosure is mandatory. Environmental disclosure regulations can also be categorized as compliance-based or beyond compliance-based. The concept of environmental information disclosure in China can be traced back to the Environmental Protection Law of the People's Republic of China (trial implementation) promulgated in 1981. Chapter one, Article six stipulated that an environmental impact report must be submitted before the construction, renovation, or expansion of a project, which was regarded as the beginning of China's government environmental information disclosure system.
Scholars have conducted extensive research on the role of environmental information disclosure. Tian, Xian-Liang (2016)[8]believes that environmental information disclosure is of practical significance in protecting the public's right to know, participate and supervise, as well as improving the quality of environmental management in developing countries. Du Yafei (2022)[9], who combined theoretical model derivation and empirical research methods, introduced environmental costs faced by enterprises into their profit functions and proved that increasing the level of environmental information disclosure has a positive impact on local ecological civilization construction. Based on an environmental health perspective, Tian Shuying et al. (2020)[10]used panel Logit models and instrumental variable methods to empirically study the positive impact of environmental information disclosure on improving residents' health. Zhang Ming et al. (2020) [11] found that environmental information disclosure can reduce enterprise pollutant emissions and improve environmental performance by adjusting industrial structure and promoting technological innovation (Chen et al., 2015)[12]. They believe that environmental information disclosure is a key factor in winning the battle against pollution prevention and control (Li et al., 2022) [13].
2.1.2 Relevant studies on green transformation development
Research related to green development has been an important topic in academia for a long time. The concept of a green economy was first proposed by Pearce (1989) [14].He believed that a green economy is a production system that combines ecological environmental governance with economic growth. It does not lead to environmental deterioration and resource depletion due to blind pursuit of economic output by humans, and is a sustainable economy. Liu Xuemin et al. (2015) [15] pointed out that achieving green transformation of enterprises is about coordinating and dealing with the relationships between enterprises and nature, enterprises and society, and within enterprises, in order to promote "double health". They suggest achieving development goals with efficiency, harmony, and sustainability, and constructing a "triad" development system of green economy, green new policy, and green society.
In studies on the influencing factors of green transformation and development of enterprises, regarding internal organizational factors, Yang Xiwei et al. (2009) [16] pointed out three major "bottlenecks": outdated strategic planning, lack of incentive constraints mechanism, and lack of core technology, which will restrict China's green economy. According to Fa Wen et al. (2022) [17], relying on technological innovation to promote increases in production capacity, energy optimization, technological innovation, and improvement of system mechanisms can lead to a company's own green development. In terms of external environmental factors, Zhao Jianjun (2016) [18] pointed out that vertical management is a significant institutional innovation for the environmental regulatory system, which can provide institutional guarantees to promote the green transformation of enterprises. Li Zhen et al. (2023) [19] found that VAT transformation reform significantly reduced the pollution emission intensity of enterprises. Tax incentives promoted rapid renewal of equipment and investment in technology, improved pollution control capabilities, and responded to environmental regulatory pressures. Feng Xingyu et al. (2022) [20] believe that the government's "streamlining administration and delegating powers, improving regulation and optimizing services" reform has accelerated industrial structure upgrades, showing a "U"-shaped relationship between green innovation efficiency and resource allocation efficiency, first inhibiting and then promoting it.
After combing and analyzing the research on environmental information disclosure and green transformation and development, it can be found that most scholars focus on the impact of environmental information disclosure on enterprise value and other financial information, and do not study environmental information disclosure as an environmental regulatory tool to investigate its impact on green development. The mechanism between the two is also not clear. At the same time, this article also pays attention to the media as a public supervision mechanism. Starting from China's "triple-party governance" in environmental governance, it studies how environmental information disclosure affects the green transformation and development of enterprises and the impact of media supervision on their relationship. This aims to provide guidance for exploring how companies can achieve green sustainable development.
2.2 Hypothesis formulation
2.2.1 Environmental Information Disclosure and Green Transformation Development
The government plays a vital role in the process of environmental governance in China, working on environmental governance through regulatory changes, tax policy changes and monitoring.Environmental regulation is a system whereby government aims to protect the environment and help businesses achieve green and sustainable development by improving their green technology innovation capabilities.The Porter hypothesis states that the promotion of green technological innovation through appropriate government environmental regulation is conducive to the development of green transformation of firms.So what kind of environmental regulatory system can effectively promote the green transformation of companies?Government environmental information disclosure has emerged as a "third generation" environmental governance tool(Tietenberg et al.,1988)[21], originating in the United States, and has gradually become an important complement and effective alternative to direct government environmental regulation and market-based instruments(Chen et al.,1988)[22].The Regulations of the People's Republic of China on the Disclosure of Government Information was officially released in April 2007, marking the beginning of the institutionalization of environmental information disclosure in China.Government environmental information disclosure refers to the comprehensive collection and collation of various types of information related to environmental protection and its release to the public in an appropriate manner, and the provision of a range of reward and punishment mechanisms related to environmental governance to improve environmental behaviour and enhance environmental quality(Wang et al.,2002)[22].The disclosure of environmental information by the government helps to encourage companies to actively participate in environmental management and to raise awareness of environmental protection. In order to establish a good image of environmental protection, it will force companies to improve the environment by increasing their expenditure on emissions, to improve their environmental performance and to achieve a green transformation of the company.Strict environmental regulations will provide a good incentive for local governments to compete, thus promoting environmental and economic harmony(Deng et al.,2015)[23].Open environmental regulation as a new environmental governance paradigm can significantly improve environmental governance performance(Fan et al.,2020)[24] and contribute to the transformation of corporate green development.This leads to hypothesis 1:
Hypothesis H1 Disclosure of environmental information promotes the green transformation of companies.
2.2.2.Environmental Information Disclosure, Media Monitoring and Green Transformation Development
It is not enough to rely on government or formal institutions to tackle pollution. Instead, environmental 'consumers' need to be guided and encouraged to take an active part in protecting the environment.In the process of implementing the government's environmental policy, companies need to be monitored throughout the process, which can be achieved not only through the government's introduction of relevant environmental regulatory initiatives, but also through stakeholder participation(Zheng et al.,2013)[25],including government monitoring, judicial monitoring and media monitoring.Compared to other means of supervision, media supervision has unique advantages: I. It has the characteristics of external supervision(Wang et al.,2017)[26];II.The media has evolved from the four traditional media - newspapers, radio, television and magazines - to the new media of today, such as the Internet, mobile phones and electronic magazines, with a large number of subjects and diversified ways of participation, which can reduce the situation of administrative supervision failures;III. As an important information intermediary, the news media can help companies understand the demands of stakeholders and the dynamics of society(Murphy,1993)[27]. At the same time, it can transmit a large amount of information to the capital market, which can effectively improve the information asymmetry between the government and companies(Wang et al.,2017)[26];IV. The media will exert environmental pressure on polluting companies, which will help to regulate their business practices(Tang et al.,2012)[28]and influence their decision-making and investor behaviour, thus helping to improve corporate governance and compensate for the shortcomings of other forms of supervision.Thus, media monitoring plays a significant role in the process of government environmental information disclosure to influence the development of green transformation of enterprises, and stronger media monitoring makes the government increase the intensity of environmental regulation, that is, improve the level of government environmental information disclosure.According to the theory of ecological modernisation, media attention will play a role in guiding the development of enterprises, effectively regulating their environmental management misconduct, guiding public opinion, exerting pressure on polluting enterprises, making it clear that the development of enterprises should take into account both economic and environmental benefits, and encouraging enterprises to strengthen their management and improve environmental protection. Thus, it will play a better role in promoting the transformation of enterprises into green development..This leads to hypothesis 2:
Hypothesis H2 Media monitoring acts as a moderator between government disclosure of environmental information and the development of corporate green transformation.