Shades of green: The impact of greenwashing on stock price crash risk

被引：8
作者：
Zhang, Xuchang [1 ]
Kong, Lingfeng [2 ]
Hu, Xuetong [3 ]
机构：
[1] Guangzhou Univ, Sch Econ & Stat, Guangzhou, Peoples R China
[2] Chongqing Univ, Dept Real Estate Management, Chongqing, Peoples R China
[3] Univ Hong Kong, HKU Business Sch, Hong Kong, Peoples R China
来源：
FINANCE RESEARCH LETTERS | 2024年 / 70卷
关键词：
Greenwashing; Stock price crash risk; Bad news hoarding; Sustainability; Managerial opportunism;
D O I：
10.1016/j.frl.2024.106285
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Using a sample of Chinese firms during 2008-2023, we reveal a positive relationship between firms' greenwashing levels and subsequent stock price crash risk. The two-stage regressions based on the instrumental variable approach and the staggered DiD regressions based on China's lowcarbon city pilot programs confirm that the relationship is causal. Mechanism tests suggest that firms resort to greenwashing to mask negative information about their sustainability and managerial opportunism, thereby increasing subsequent stock price crash risk. Heterogeneity analysis reinforces this mechanism, showing that the impact of greenwashing is greater for firms with stronger greenwashing incentives, less transparency, and weaker governance mechanisms.
引用
收藏
页数：10
相关论文
共 24 条
[1]   Climate Change Concerns and the Performance of Green vs. Brown Stocks [J].
Ardia, David ;
Bluteau, Keven ;
Boudt, Kris ;
Inghelbrecht, Koen .
MANAGEMENT SCIENCE, 2023, 69 (12) :7607-7632
[2]   Revisiting Event-Study Designs: Robust and Efficient Estimation [J].
Borusyak, Kirill ;
Jaravel, Xavier ;
Spiess, Jann .
REVIEW OF ECONOMIC STUDIES, 2024, 91 (06) :3253-3285
[3]   Who's Greenwashing Via the Media and What are the Consequences? Evidence From China [J].
Cao, Jerry ;
Faff, Robert ;
He, Jing ;
Li, Yong .
ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES, 2022, 58 (04) :759-786
[4]   Corporate social responsibility and managerial entrenchment [J].
Cespa, Giovanni ;
Cestone, Giacinta .
JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, 2007, 16 (03) :741-771
[5]   Attention to Global Warming [J].
Choi, Darwin ;
Gao, Zhenyu ;
Jiang, Wenxi .
REVIEW OF FINANCIAL STUDIES, 2020, 33 (03) :1112-1145
[6]   Concepts and forms of greenwashing: a systematic review [J].
de Freitas Netto, Sebastiao Vieira ;
Sobral, Marcos Felipe Falcao ;
Ribeiro, Ana Regina Bezerra ;
Soares, Gleibson Robert da Luz .
ENVIRONMENTAL SCIENCES EUROPE, 2020, 32 (01)
[7]   Stakeholder Value: A Convenient Excuse for Underperforming Managers? [J].
Flugum, Ryan ;
Souther, Matthew E. .
JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2025, 60 (01) :135-168
[8]   Green credit policy and corporate climate risk exposure [J].
He, Feng ;
Duan, Lin ;
Cao, Yi ;
Wen, Shuyang .
ENERGY ECONOMICS, 2024, 133
[9]   Does CSR Engagement Deter Corporate Misconduct? Quasi-natural Experimental Evidence from Firms Joining a Government-Initiated Social Program in China [J].
He, Feng ;
Huang, Xin ;
Liu, Guanchun ;
Wang, Ziqiao .
JOURNAL OF BUSINESS ETHICS, 2024, 193 (03) :555-587
[10]   Corporate ESG rating and stock market liquidity: Evidence from China [J].
He, Feng ;
Feng, Yaqian ;
Hao, Jing .
ECONOMIC MODELLING, 2023, 129
123