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Analyst following and greenwashing decision

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  • Liu, Yuxiang
  • Zhang, Jiewei
  • Dai, Yue

Abstract

This study identifies analyst following as a determinant of corporate greenwashing decisions. Our study reveals that analyst following can effectively mitigate the extent of company greenwashing, as analysts can help reduce information asymmetry and play a crucial role in supervision. Moreover, our findings are stronger in samples characterized by high levels of information asymmetry and weak corporate governance environment. Overall, the results are consistent with the view that analysts play an important role in enterprise behavior.

Suggested Citation

  • Liu, Yuxiang & Zhang, Jiewei & Dai, Yue, 2023. "Analyst following and greenwashing decision," Finance Research Letters, Elsevier, vol. 58(PC).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323008826
    DOI: 10.1016/j.frl.2023.104510
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    References listed on IDEAS

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    Cited by:

    1. Guangrui Liu & Hao Qian & Yong Shi & Deli Yuan & Ming Zhou, 2024. "How do firms react to capital market liberalization? Evidence from ESG reporting greenwashing," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4329-4344, September.
    2. Huang, Lingyu & Chen, Aoyun, 2024. "Family business succession and corporate ESG behavior," Finance Research Letters, Elsevier, vol. 60(C).
    3. Yin, Lei & Yang, Yuanyuan, 2024. "How does digital finance influence corporate greenwashing behavior?," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 359-373.
    4. Zhang, Yuyao & Li, Yinuo & Chen, Xingyu, 2024. "Does green bond issuance affect stock price crash risk? Evidence from China," Finance Research Letters, Elsevier, vol. 60(C).
    5. Hui Zhi & Yuanying Chi & Rui Peng & Kaiye Gao, 2024. "Does Investor Attention Affect Corporate Greenwashing? Evidence from China," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(4), pages 1-6.
    6. Jiao, Anqi & Lu, Juntai & Ren, Honglin & Wei, Jia, 2024. "The role of AI capabilities in environmental management: Evidence from USA firms," Energy Economics, Elsevier, vol. 134(C).
    7. Sun, Yabin, 2024. "Bank competition and firm greenwashing: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).

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