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China currently adopts voluntary principles to disclose sustainable development information, and so considerable numbers of listed companies have chosen not to disclose such information. Since disclosure and non-disclosure groups face different production opportunities, this research uses the meta-frontier framework to completely analyze sustainable development practices of China’s artificial intelligence (AI) industry. Empirical results show that the disclosure group outperforms the non-disclosure group in operating scales, efficiencies, and technologies, while the superior efficiency of state-owned enterprises (SOEs) comes entirely from the non-disclosure group. Hence, the government should mandate or actively encourage capable corporations, especially SOEs, to disclose sustainable development information, as doing so improves the overall sustainable development of society and also enhances these firms’ performance. Finally, the authority can formulate a nationwide disclosure policy regardless of the existing differences in regional development.

Meta-Frontier Analysis of Disclosing Sustainable Development Information: Evidence from China’s AI Industry