 Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective explorationDongyang Zhang Energy Economics, 2023, vol. 121, issue C Abstract: This paper investigates the link between green finance development and firms' environmental, social, and governance (ESG) performance quality based on a firm-level panel dataset from 2014 to 2020. The risk of extremely hypocritical ESG disclosures greatly matters to sustainable growth. Empirical evidence indicates that the development of green finance can play an effective role in motivating ESG performance by mitigating firms' reactions in alleviating greenwashing. We find evidence supporting moderating effects of green finance on increasing firms' green innovation activities, profitability, and reducing financial constraints level. In addition, the improvement effect of green finance on corporate greenwashing performance is more pronounced in state-owned firms, pollution-intensive firms, and firms with a higher level of environmental regulation than publicly listed corporations. Overall, this paper provides a timely assessment of the social value of green finance in emerging markets with a novel connection to ESG. Keywords: Green finance; ESG; Greenwashing; Green innovation; Financial constraints (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:121:y:2023:i:c:s014098832300186x DOI: 10.1016/j.eneco.2023.106688 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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