How the Market Values Greenwashing? Evidence from China

被引:363
作者
Du, Xingqiang [1 ,2 ]
机构
[1] Xiamen Univ, Sch Management, Ctr Accounting Studies, Xiamen 361005, Fujian, Peoples R China
[2] Xiamen Univ, Sch Management, Accounting Dept, Xiamen 361005, Fujian, Peoples R China
基金
高等学校博士学科点专项科研基金; 中国国家自然科学基金;
关键词
Greenwashing; Corporate environmental performance; Cumulative abnormal returns (CAR); Media coverage; The Global Reporting Initiative (GRI); The competitive effect; The contagious effect; Environmental wrongdoer; China; ENVIRONMENTAL DISCLOSURES; GREEN INNOVATION; CAPITAL-MARKETS; MEDIA; PERFORMANCE; POLLUTION; INFORMATION; MANAGEMENT; IMPACT; PRESS;
D O I
10.1007/s10551-014-2122-y
中图分类号
F [经济];
学科分类号
02 ;
摘要
In China, many firms advertise that they follow environmentally friendly practices to cover their true activities, a practice called greenwashing, which can cause the public to doubt the sincerity of greenization messages. In this study, I investigate how the market values greenwashing and further examine whether corporate environmental performance can explain different and asymmetric market reactions to environmentally friendly and unfriendly firms. Using a sample from the Chinese stock market, I provide strong evidence to show that greenwashing is significantly negatively associated with cumulative abnormal returns (CAR) around the exposure of greenwashing. In addition, corporate environmental performance is significantly positively associated with CAR around the exposure of greenwashing. Furthermore, my findings suggest that corporate environmental performance has two distinct effects on CAR around the exposure of greenwashing: the competitive effect for environmentally friendly firms and the contagious effect for potential environmental wrongdoers, respectively. The results are robust to various sensitivity tests.
引用
收藏
页码:547 / 574
页数:28
相关论文
共 90 条
[1]   The relations among environmental disclosures environmental performance, and economic performance: a simultaneous equations approach [J].
Al-Tuwaijri, SA ;
Christensen, TE ;
Hughes, KE .
ACCOUNTING ORGANIZATIONS AND SOCIETY, 2004, 29 (5-6) :447-471
[2]  
Alves I.M., 2009, Journal of Global Change Governance, V2, P1
[3]  
[Anonymous], W8288 NAT BUR EC RES
[4]  
[Anonymous], 2006, SUST REP GUID
[5]   Can Mutual Fund Managers Pick Stocks? Evidence from Their Trades Prior to Earnings Announcements [J].
Baker, Malcolm ;
Litov, Lubomir ;
Wachter, Jessica A. ;
Wurgler, Jeffrey .
JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2010, 45 (05) :1111-1131
[6]  
Blacconiere WalterG., 1997, J ACCOUNT AUDIT FINA, V12, P149, DOI [10.1177/0148558X9701200203, DOI 10.1177/0148558X9701200203]
[7]  
Bragdon JosephH., 1972, Risk Management, V19, P9, DOI DOI 10.1017/CBO9781107415324.004
[8]   USING DAILY STOCK RETURNS - THE CASE OF EVENT STUDIES [J].
BROWN, SJ ;
WARNER, JB .
JOURNAL OF FINANCIAL ECONOMICS, 1985, 14 (01) :3-31
[9]   The company and the product: Corporate associations and consumer product responses [J].
Brown, TJ ;
Dacin, PA .
JOURNAL OF MARKETING, 1997, 61 (01) :68-84
[10]  
Burdick D., 2009, Top 10 Greenwashing Companies in America