Allocation of decision rights in business group and the corporate greenwashing behavior

He Li and Naiyu Shi

Finance Research Letters, 2025, vol. 75, issue C

Abstract: The configuration of decision-making rights within corporate groups is a critical determinant of corporate behavior. An analysis of data from listed companies in China spanning the years 2010 to 2022 reveals that a higher degree of centralization in the decision-making rights of corporate groups can significantly mitigate the occurrence of greenwashing behavior through information effect, resource effect, and governance effect. The inhibitory impact of centralized decision-making on corporate greenwashing behavior is particularly pronounced in firms characterized by limited financing capabilities and substantial pollution levels.

Keywords: Allocation of decision rights; Greenwashing behavior; Information asymmetry; Tax burden; Managerial myopic behavior (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001941

DOI: 10.1016/j.frl.2025.106930

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