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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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    6. Qu, Shawn, 2024. "Costs may be a blessing in disguise: Litigation risk and greenwashing," Finance Research Letters, Elsevier, vol. 62(PA).
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    11. Sun, Haibo & Bai, Tonghuan & Liu, Zhonglu, 2024. "Perceived policy uncertainty and enterprise greenwashing risk," Finance Research Letters, Elsevier, vol. 69(PA).
    12. Muhammad Kaleem Khan & Chunhui Huo & R. M. Ammar Zahid & Umer Sahil Maqsood, 2024. "The automated sustainability auditor: Does artificial intelligence curtail greenwashing behavior in Chinese firms?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 9015-9039, December.
    13. Lorena Espina-Romero & Doile Ríos Parra & Humberto Gutiérrez Hurtado & Egidio Peixoto Rodriguez & Francisco Arias-Montoya & José Gregorio Noroño-Sánchez & Rosa Talavera-Aguirre & Javier Ramírez Corzo , 2024. "The Role of Digital Transformation and Digital Competencies in Organizational Sustainability: A Study of SMEs in Lima, Peru," Sustainability, MDPI, vol. 16(16), pages 1-23, August.
    14. Sun, Yabin, 2024. "Bank competition and firm greenwashing: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).
    15. Liu, Yuying, 2024. "Climate risk perception, female directors and greenwashing," Finance Research Letters, Elsevier, vol. 70(C).
    16. 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).
    17. Liu, Zhuang & Li, Xingyi, 2024. "The impact of bank fintech on ESG greenwashing," Finance Research Letters, Elsevier, vol. 62(PB).

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