Does executive gender diversity culture inhibit corporate greenwashing behavior? The effect of informal institutions

Rabindra Nepal, Youyi Deng, Kangyin Dong () and Stéphane Goutte

International Review of Financial Analysis, 2025, vol. 97, issue C

Abstract: When the issues of gender equality and environmental protection become hot topics in society, exploring the influence of corporate gender diversity culture on corporate greenwashing can satisfy societal demands and corporate development. This paper examines the impact of corporate executive gender diversity culture (CEGDC) on corporate greenwashing based on 833 listed Chinese companies covering 2010–2020. Besides, considering the importance of informal institutions and green innovation behavior on enterprise development and construction, we further explore the mediating role of both, thus deepening the research on corporate informal institutions and green innovation. The results show that, first, CEGDC can reduce corporate greenwashing, and these findings remain valid even after robustness tests using the instrumental variable method. Second, informal institutions and green innovation behaviors play an important role in reducing corporate greenwashing. Specifically, female executives can reduce corporate greenwashing behaviors by enhancing executives' green cognition and promoting green innovation. Finally, the heterogeneity study found that when faced with strict external environmental regulation, the CEGDC can play a more obvious effect. In addition, CEGDC has mainly decreased greenwashing in corporations with small-sized and higher loan capacities.

Keywords: CEGDC; Corporate greenwashing; Informal institutions; Green innovation behaviors (search for similar items in EconPapers)
JEL-codes: D02 M14 M51 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:97:y:2025:i:c:s1057521924008202

DOI: 10.1016/j.irfa.2024.103888

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