Navigating green routes : how does air connectivity influence environmental information disclosure quality?

Abstract

Corporations' environmental information disclosure quality (EIDQ) is critical for green transformation, and aviation may facilitate this by reducing th spatiotemporal distance of information exchange. However, the causal relationship between air connectivity and EIDQ remains underexplored. This study examines the impact of city-level air connectivity on corporate EIDQ for China's A-share listed firms from 2008 to 2023. Findings indicate that enhanced air connectivity significantly improves both monetary and non-monetary EIDQ by boosting executive green awareness and attracting green investments. The positive effect is further reinforced by soft constraints (negative authoritative media coverage) and hard constraints (government environmental regulations). Moreover, the positive effect of air connectivity on EIDQ becomes insignificant in remote areas, whereas full-service airlines (FSAs) exert a stronger influence on EIDQ than low-cost carriers (LCCs). This study bridges the gap between aviation services and green corporate practices, offering valuable insights to improve the EIDQ.