Can environmental regulation inhibit enterprises` greenwashing? Evidence from implementing the New Environment Protection Law

Yue Li and Zhongwen Deng

Finance Research Letters, 2025, vol. 81, issue C

Abstract: This research examines, conceptually and empirically, the impact of environmental regulation on corporate greenwashing. This research utilizes the New Environmental Protection Law as a natural experiment to investigate the causal relationship between environmental legislation and corporate greenwashing actions from 2009 to 2023. The results suggest that implementing the new Environmental Protection Law can deter corporate greenwashing by promoting total factor productivity and improving internal management capabilities.

Keywords: New Environmental Protection Law; Greenwashing behavior; Environmental regulation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007354

DOI: 10.1016/j.frl.2025.107476

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