Hometown CEOs and greenwashing: From the perspective of energy consumption

Xinhui Yang, Chih-Wei Wang, Jie Zhang and Weizheng Lin

Economic Analysis and Policy, 2025, vol. 86, issue C, 826-838

Abstract: In the context of global efforts to reach the goal of carbon neutrality, reducing energy consumption, and ensuring energy security have emerged as urgent matters. For firms, the superior Environmental, Social, and Governance (ESG) performance reflects their endeavors toward the carbon neutrality goal and would confer a high green reputation upon them. However, enhancing the actual performance demands a substantial cost; some firms thus resort to "greenwashing," deceptive tactics employed by companies to appear environmentally and socially responsible to conceal their poor ESG performance, which hinders the attainment of carbon neutrality. This study examines the role of hometown CEOs in mitigating greenwashing within Chinese-listed firms. Our findings reveal that hometown CEOs effectively reduce greenwashing by enhancing disclosure practices, and this effect is more pronounced for firms with low energy consumption. This research offers actionable insights for policymakers and corporations, emphasizing the significance of leadership characteristics informed by place-based identity theories in combating greenwashing.

Keywords: Greenwash; Hometown CEOs; ESG disclosure; ESG performance; Energy consumption (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:826-838

DOI: 10.1016/j.eap.2025.03.054

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