Transparency, Governance, and Innovation: Unveiling the Impact of Environmental Information Disclosure on Corporate Value and Green Innovation Capabilities

Abstract

This study investigates the developing links between environmental data, information disclosure, governance, and sustainable innovation strategies in heavy industries. The significance of transparency in large companies is emphasised, particularly in the current global context where environmental sustainability is a pressing concern. The research explores both quantitative and qualitative aspects of environmental transparency, with a focus on the quality and sustainability of environments and their influence on governance systems and innovation strategies in heavy industries, to gain a more comprehensive understanding. Six heavy industrial firms were thoughtfully chosen to guarantee the pertinence and precision of the data collected, considering their environmental credit ratings. The study uncovers a noteworthy positive connection between the extent of environmental reporting and the achievement of corporate governance. Companies that openly share information about their environmental performance typically have more robust governance systems. Transparency is recognised as a crucial factor in fostering accountability and informing strategic decision-making, leading to an increased emphasis on transparency in corporate environmental policies. The report highlights the importance of environmental transparency in fostering sustainable innovation strategies. It emphasises that businesses that prioritise transparency are more inclined towards innovation. In addition, the research reveals the two mediating roles of corporate governance and market competition in this intricate process. Corporate governance plays a crucial role in driving sustainability innovation and connecting environmental transparency with innovative practices. In addition, the study emphasises the importance of efficient governance in fostering innovation within competitive market environments, highlighting the significant impact it can have. Through a thorough examination of these complex connections, this study provides significant contributions to the ongoing discourse surrounding environmental practices in the business sector. It points out the importance of transparency in improving governance mechanisms and fostering innovation in heavy industries. The findings highlight the importance of implementing policies that encourage transparency and effective governance to foster sustainable innovation in heavy industries.