Greenwashing and product market competition

Mohamed Arouri, Sadok El Ghoul and Mathieu Gomes

Finance Research Letters, 2021, vol. 42, issue C

Abstract: This study examines the relationship between corporate greenwashing and product market competition (PMC). Using an unbalanced panel of 324 US firms over the 2005–2015 period, we find that the negative impact of PMC on greenwashing is conditional on the level of environmental costs. Our results suggest that PMC is an effective disciplinary mechanism for achieving economic efficiency – in the case of firms featuring a high level of environmental costs– through an increase in the disclosure of reliable and material information.

Keywords: Greenwashing; Product market competition; Environmental cost (search for similar items in EconPapers)
JEL-codes: G32 L10 M14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:42:y:2021:i:c:s1544612321000088

DOI: 10.1016/j.frl.2021.101927

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