Navigating greenwashing in the G8: Insights into family-owned firms, technology innovation, and economic policy uncertainty

Madiha Kiran, Sumayya Chughtai and Muhammad Abubakr Naeem

Research in International Business and Finance, 2024, vol. 71, issue C

Abstract: Our study provides practical insights into the impact of greenwashing on Corporate Financial Performance (CFP) and investment efficiency. We delve into the moderating influences of family-owned firms, technological innovation, and economic policy uncertainty in the nexus between greenwashing and CFP. Using a Method of Moments Quantile Regression (MMQR) model and conducting robustness tests, our results suggest that in G8 nations, family-oriented stakeholders struggle to discern greenwashing due to low information asymmetry. However, technological innovation and reduced economic policy uncertainty enhance the identification of greenwashing. Greenwashing enhances firm value by improving disclosure quality, addressing stakeholder concerns, and easing financing constraints. Notably, heavily polluting and mandatory disclosure firms experience more significant economic performance from greenwashing. This study provides practical implications for firms, policymakers, and stakeholders, fostering sustainable development in G8 nations.

Keywords: Greenwashing; Financial performance; Technology innovation; Economic policy uncertainty; Stakeholder engagement (search for similar items in EconPapers)
JEL-codes: G20 G23 G34 (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:riibaf:v:71:y:2024:i:c:s0275531924002745

DOI: 10.1016/j.ribaf.2024.102481

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