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Fostering environmental integrity via investor-focused communications: Private in-house meeting disclosures and greenwashing behaviors

Author

Listed:
  • Cao, June
  • Huang, Zijie
  • Shahid, Ahmad Usman

Abstract

This study explores whether and how mandatory disclosure of private in-house meetings affects corporate environmental behaviors. Employing a difference-in-differences model, we find that regulated firms significantly reduce their greenwashing behaviors in response to the implementation of mandatory disclosure of private in-house meetings. We identify that mandatory disclosure of private in-house meetings decreases greenwashing behaviors by fostering a corporate culture of integrity. Firms with higher information asymmetry before the mandate exhibit a greater reduction in greenwashing behaviors after mandatory disclosure of private in-house meetings. Furthermore, we document that firms reducing greenwashing as a result of this mandatory disclosure policy witness an improvement in their social reputations. Our study offers insightful implications to policymakers and practitioners by shedding light on the significant role of investor-focused communications in mitigating greenwashing behaviors, thereby bolstering firms’ environmental integrity and accountability.

Suggested Citation

  • Cao, June & Huang, Zijie & Shahid, Ahmad Usman, 2025. "Fostering environmental integrity via investor-focused communications: Private in-house meeting disclosures and greenwashing behaviors," Journal of Economic Behavior & Organization, Elsevier, vol. 232(C).
  • Handle: RePEc:eee:jeborg:v:232:y:2025:i:c:s0167268125000666
    DOI: 10.1016/j.jebo.2025.106946
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    More about this item

    Keywords

    Private in-house meetings; Greenwashing behaviors; Reporting integrity; Information asymmetry;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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