Perceived policy uncertainty and enterprise greenwashing risk

Haibo Sun, Tonghuan Bai and Zhonglu Liu

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: Using data of Chinese A-share listed enterprises from 2009 to 2022, this study analyzes the impact of perceived policy uncertainty on enterprise greenwashing risk. The research identifies a significant positive correlation between perceived policy uncertainty and greenwashing risk. The mechanism test shows that strong perceived policy uncertainty increases enterprise greenwashing risk by increasing financial risk and financing constraints. In addition, overcoming managerial myopia and encouraging green management innovation are key to avoiding enterprise greenwashing risk in an uncertain policy environment. The paper's conclusions offer the Chinese government information to improve policy coherence and prevent enterprise greenwashing risk.

Keywords: Perceived policy uncertainty; Enterprise greenwashing risk; Financial risk; Managerial myopia; Green management innovation (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011772

DOI: 10.1016/j.frl.2024.106148

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