The Impact of Carbon Risk on Corporate Greenwashing Behavior: Inhibition or Promotion?

Changjiang Zhang, Sihan Zhang (), Ye Yang and Zhepeng Zhou
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Changjiang Zhang: School of Economics and Management, Nanjing Tech University, Nanjing 211816, China
Sihan Zhang: School of Economics and Management, Southeast University, Nanjing 211189, China
Ye Yang: School of Economics and Management, Nanjing Tech University, Nanjing 211816, China
Zhepeng Zhou: School of Economics and Management, Nanjing Tech University, Nanjing 211816, China

Sustainability, 2025, vol. 17, issue 22, 1-18

Abstract: Climate risks arising from carbon emissions have become a major global challenge, constraining economic development and exerting complex effects on firms’ operations at the micro level. This study examines A-share-listed companies from 2009 to 2023, calculating the extent of carbon risks and the degree of greenwashing. Our results show that carbon risks suppress greenwashing among these enterprises, with financing constraints and the quality of internal controls positively moderating this effect from both external and internal perspectives. This suggests that the pressure imposed by carbon risks encourages enterprises to prioritize environmental concerns and actively disclose relevant information. Additionally, governments and regulatory authorities should increase their policy and regulatory pressures on these enterprises, guiding them to confront environmental challenges, assume significant responsibility for ecological protection, and formulate sustainable development strategies to enhance their competitiveness and long-term viability.

Keywords: carbon risk; greenwashing behavior; financing constraint; internal control; media coverage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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