Does ESG report greenwashing increase stock price crash risk?

Guangrui Liu, Hao Qian, Yong Shi, Yu Zhang and Fengyuan Wu

China Journal of Accounting Studies, 2024, vol. 12, issue 3, 615-639

Abstract: From the perspective of non-financial information greenwashing, this paper investigates the impact mechanism of environmental, social and governance (ESG) report greenwashing on stock price crash risk. The results indicate that ESG report greenwashing increases the stock price crash risk. In high earnings management companies, ESG report greenwashing is positively correlated with stock price crash risk, and ESG report greenwashing and earnings management are complementary. Further analysis shows that better internal and external corporate governance can suppress the impact of ESG greenwashing. In addition, in the voluntary disclosure and private enterprise samples, ESG report greenwashing has a greater impact on the stock price crash risk. Mechanism analysis found that the greenwashing of ESG reports intensified the information asymmetry，which increased the stock price crash risk. Overall, our evidence is consistent with the masking effect of socially responsible information, and that ESG greenwashing increases the stock price crash risk.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/21697213.2024.2303070 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rcjaxx:v:12:y:2024:i:3:p:615-639

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcja20

DOI: 10.1080/21697213.2024.2303070

Access Statistics for this article

China Journal of Accounting Studies is currently edited by Xiaochen Dou

More articles in China Journal of Accounting Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().