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Does corporate engagement in digital transformation influence greenwashing? Evidence from China

Zhenye Lu, Yongjia Lin and You Li

Finance Research Letters, 2023, vol. 58, issue PD

Abstract: This study examines how digital transformation (DT) influences corporate greenwashing behavior. Using a sample of Chinese listed companies from 2011 to 2021, we show that DT can significantly reduce corporate greenwashing behavior. We also show heterogeneity across firms, industries, and regions, and suggest that this relationship is particularly pronounced for state-owned enterprises, firms with high media attention and in industries with high carbon emissions, and highly developed regions. Our results are robust and show that DT plays an important role in shaping corporate greenwashing behavior in the context of China's fast-growing digital economy.

Keywords: Greenwashing; Digital transformation; ESG disclosures; ESG practices (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009303

DOI: 10.1016/j.frl.2023.104558

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