Resistance or motivation? Impact of climate risk on corporate greenwashing: An empirical study of Chinese enterprises

Jing-Yue Liu, Quan Lei, Ruojin Li and Yue-Jun Zhang ()

Global Finance Journal, 2024, vol. 62, issue C

Abstract: Increasing climate risk (CR) has pushed corporate environmental responsibility into the limelight, requiring a deeper understanding of its impact on corporate environmental behavior. This study examined the impact of CR on corporate greenwashing using data from A-share listed enterprises in China from 2009 to 2022. The findings indicate the following: (1) Augmented CR significantly discourages corporate greenwashing, primarily by improving corporate innovation capabilities; (2) Strong external and internal corporate governance magnifies the inhibitory effect of CR on greenwashing, stimulating authentic environmental actions during crises; (3) The impact of CR on greenwashing is more pronounced in executive teams with greater gender diversity, higher educational levels, shorter tenures, and increased visibility; (4) In the context of CR, greenwashing hinders corporate high-quality development; (5) The impact of CR is particularly notable in state-owned enterprises, enterprises in industries with lower competitive intensity, and enterprises in their maturity or decline stages.

Keywords: Climate risk; Greenwashing; Corporate governance; Executive characteristics; High-quality development (search for similar items in EconPapers)
JEL-codes: D22 G30 M14 Q01 Q51 Q54 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:62:y:2024:i:c:s1044028324001029

DOI: 10.1016/j.gfj.2024.101030

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