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An Entropy-GRA-TOPSIS model for evaluating the quality of enterprises’ green information disclosure from the perspective of green financing

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Abstract

Environmental information disclosure, an essential way of making business information transparent, can enable enterprises to reduce their financing costs and improve financing efficiency in the green financing market. This study used a green information disclosure quality evaluation system comprising 24 indicators, followed by the entropy weight method, grey relation analysis method and technique for order preference by similarity to ideal solution to provide a comprehensive green information disclosure quality evaluation method for enterprises in the green financing market. Subsequently, we empirically analyzed Chinese listed companies. The results revealed that indicators, such as pollutant emissions, environmental protection concepts, and environmental protection goals, are important factors in the evaluation of green information quality. The overall quality of green information disclosed by the sample companies was poor and varied significantly. For heavily polluting enterprises, the evaluation results obtained via the proposed method matched perfectly with the corporate environmental rating results published by the Chinese environmental social governance rating agency, China Cheng**n Green Finance. Moreover, compared with the traditional method, the integrated method could reflect the overall evaluation differences such that the green information disclosure quality of green enterprises could be evaluated more reasonably and effectively. This provides relevant directions for institutional developers and incentives for companies to disclose environmental information.

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Funding

This work is supported by the Social Sciences Planning Projects of Ningbo (G2023-2-65) and Ningbo Natural Science Foundation (2023J101).

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Authors and Affiliations

  1. School of Business, Ningbo University, Ningbo, 315211, China

    Kaihao Wang, Gaoyuan Feng, Qi Shi & Shouzhen Zeng

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  1. Kaihao Wang
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  2. Gaoyuan Feng
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  3. Qi Shi
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  4. Shouzhen Zeng
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Contributions

KW, original draft; GF, methodology; QS, visualization; SZ, review and editing.

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Correspondence to Shouzhen Zeng.

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Wang, K., Feng, G., Shi, Q. et al. An Entropy-GRA-TOPSIS model for evaluating the quality of enterprises’ green information disclosure from the perspective of green financing. Granul. Comput. 8, 1783–1797 (2023). https://doi.org/10.1007/s41066-023-00401-1

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