Fostering environmental integrity via investor-focused communications: Private in-house meeting disclosures and greenwashing behaviors

June Cao, Zijie Huang and Ahmad Usman Shahid

Journal of Economic Behavior & Organization, 2025, vol. 232, issue C

Abstract: This study explores whether and how mandatory disclosure of private in-house meetings affects corporate environmental behaviors. Employing a difference-in-differences model, we find that regulated firms significantly reduce their greenwashing behaviors in response to the implementation of mandatory disclosure of private in-house meetings. We identify that mandatory disclosure of private in-house meetings decreases greenwashing behaviors by fostering a corporate culture of integrity. Firms with higher information asymmetry before the mandate exhibit a greater reduction in greenwashing behaviors after mandatory disclosure of private in-house meetings. Furthermore, we document that firms reducing greenwashing as a result of this mandatory disclosure policy witness an improvement in their social reputations. Our study offers insightful implications to policymakers and practitioners by shedding light on the significant role of investor-focused communications in mitigating greenwashing behaviors, thereby bolstering firms’ environmental integrity and accountability.

Keywords: Private in-house meetings; Greenwashing behaviors; Reporting integrity; Information asymmetry (search for similar items in EconPapers)
JEL-codes: G38 M41 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:232:y:2025:i:c:s0167268125000666

DOI: 10.1016/j.jebo.2025.106946

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