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Does corporate engagement in digital transformation influence greenwashing? Evidence from China

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  • Lu, Zhenye
  • Lin, Yongjia
  • Li, You

Abstract

This study examines how digital transformation (DT) influences corporate greenwashing behavior. Using a sample of Chinese listed companies from 2011 to 2021, we show that DT can significantly reduce corporate greenwashing behavior. We also show heterogeneity across firms, industries, and regions, and suggest that this relationship is particularly pronounced for state-owned enterprises, firms with high media attention and in industries with high carbon emissions, and highly developed regions. Our results are robust and show that DT plays an important role in shaping corporate greenwashing behavior in the context of China's fast-growing digital economy.

Suggested Citation

  • Lu, Zhenye & Lin, Yongjia & Li, You, 2023. "Does corporate engagement in digital transformation influence greenwashing? Evidence from China," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009303
    DOI: 10.1016/j.frl.2023.104558
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    Cited by:

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    2. Li, Yiping & Zheng, Lanxing & Xie, Chang & Fang, Jiming, 2024. "Big data development and enterprise ESG performance: Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 742-755.
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    6. Chen, Lu & Ma, Yan & Feng, Gen-Fu & Chang, Chun-Ping, 2024. "Does environmental governance mitigate the detriment of greenwashing on innovation in China?," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).

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