Environmental information disclosure, environmental innovation, and firms' growth performances: The moderating role of media attention

Abstract Environmental innovation not only promotes the harmonious development of the economy and the environment, but also has an influence on firms' growth. Based on institutional theory and reputation theory, this study constructs a model of the relationship among environmental information disclosure, environmental innovation, and firms' growth performances along the path of institution — behavior — performance. By selecting the panel data of 200 heavily polluting firms listed on the Shanghai and Shenzhen A‐share markets from 2014 to 2018 as the research sample, this study examines the role of environmental information disclosure in firms' environmental innovation and growth performances, as well as the moderating role of media attention. The results revealed that environmental information disclosure had a positive effect on firms' growth performances, and that eco‐product and eco‐process innovations played mediating roles in the relationship between environmental information disclosure and firms' growth performances. In addition, media attention positively moderated the influence of environmental information disclosure on firms' eco‐product innovations. This study contributes to the research on the antecedents of environmental innovation, and provides guidance for improving the environmental information disclosure system and for enhancing the level of firms' performance.