Executive Green Cognition on Corporate Greenwashing Behavior: Evidence From A‐Share Listed Companies in China

Greenwashing has become a strategy for companies to comply with environmental regulations, while also projecting an eco‐friendly image. This study examined how executives' green cognition affected the corporate greenwashing using both fixed effect and moderated mediation models. The findings indicated that the executives' green cognition significantly reduced the greenwashing behavior, whereas its effectiveness decreased with the increasing financial constraints. Additionally, the executives' green cognition helped mitigate the greenwashing by promoting innovation in green management, while this effect was limited by financial constraints. Furthermore, in highly competitive industries and with substantial ownership stakes among senior executives, the impact of green cognition on greenwashing was constrained. However, when the roles of the chairman and general manager were separate, senior executives' green cognition effectively avoided the greenwashing. Moreover, after the COVID‐19 pandemic, the inhibitory effect of executives' green cognition on greenwashing became more pronounced. This study could offer valuable insights into reducing corporate greenwashing and enhancing environmental credibility.