IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v67y2024ipas1544612324009073.html
   My bibliography  Save this article

Does corporate greenwashing affect investors' decisions?

Author

Listed:
  • Li, Tinghui
  • Shu, Xin
  • Liao, Gaoke

Abstract

Greenwashing creates a misleadingly positive image for corporations while leading to the misguidance of investors' behaviors. Based on the sample of Chinese A-share listed companies for the period 2008–2021, this paper investigates the impact of corporate greenwashing on investors’ decisions. The empirical results indicate that (i) greenwashing significantly improves short-term returns on corporate stocks, but reduces long-term returns; (ii) in the short term, investors are influenced by expressive manipulation rather than selective disclosure, but this impact is not sustainable, and both have an impact in the long term. These findings provide a new risk reminder for investors’ behaviors and have practical significance for government to promote the green development of corporations.

Suggested Citation

  • Li, Tinghui & Shu, Xin & Liao, Gaoke, 2024. "Does corporate greenwashing affect investors' decisions?," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324009073
    DOI: 10.1016/j.frl.2024.105877
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324009073
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105877?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yikang Xing, 2024. "Under the Goal of Sustainable Development, Do Regions with Higher Energy Intensity Generate More Green Innovation? Evidence from Chinese Cities," Sustainability, MDPI, vol. 16(15), pages 1-19, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324009073. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.