Does artificial intelligence deter greenwashing?

Donghui Li, Zhanxiang Zhang and Xin Gao

Finance Research Letters, 2024, vol. 67, issue PB

Abstract: Employing 6,940 observations of 1,205 Chinese-listed firms from 2012 to 2022, we provide robust evidence that Artificial Intelligence (hereafter AI) inhibits greenwashing. We further find that AI achieves this effect by mitigating agency problems, easing financing constraints, and increasing external attention. In addition, the positive impact of AI in curbing greenwashing is more notable in politically unaffiliated firms, those with fewer female directors, or those with weaker equity incentives. Our findings highlight AI's crucial role in combating greenwashing and maintaining capital market order.

Keywords: Artificial intelligence; Greenwashing; ESG performance; Corporate governance (search for similar items in EconPapers)
JEL-codes: G34 M14 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pb:s154461232400984x

DOI: 10.1016/j.frl.2024.105954

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