IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v13y2025i4p64-d1622005.html
   My bibliography  Save this article

Do Board Characteristics Matter with Greenwashing? An Investigation in the Financial Sector with the Integration of Entropy Weight and TOPSIS Multicriteria Decision-Making Methods

Author

Listed:
  • Eleni Poiriazi

    (Department of Business Administration, University of Western Macedonia, 51 100 Grevena, Greece)

  • Georgia Zournatzidou

    (Department of Business Administration, University of Western Macedonia, 51 100 Grevena, Greece)

  • George Konteos

    (Department of Business Administration, University of Western Macedonia, 51 100 Grevena, Greece)

Abstract

Financial industry executives are sincerely concerned about the potential effects of greenwashing on their organizations. The primary objective of this research is to investigate the impact of board features on greenwashing and the strategies that executives may develop to mitigate the effects of corporate washing phenomena. A novel set of criteria was evaluated for 359 listed European financial institutions. Data were acquired from the Refinitiv Eikon database for the Fiscal Year 2024. The entropy weight and TOPSIS multicriteria decision-making methodologies were used to assess the data. These assist us in determining the relative importance of each chosen criteria about the board’s attributes and their impact on greenwashing. The study indicates that governance is the primary factor affecting greenwashing. Furthermore, findings indicate that the board of directors significantly influences the increased prevalence of greenwashing among financial firms. This suggests that the relationship between board size and greenwashing is debatable. The problem of greenwashing has primarily elevated the standards for evaluating board effectiveness and conflicts of interest, which are listed third on the list. The study results may inform the establishment of a new research agenda in the examined area.

Suggested Citation

  • Eleni Poiriazi & Georgia Zournatzidou & George Konteos, 2025. "Do Board Characteristics Matter with Greenwashing? An Investigation in the Financial Sector with the Integration of Entropy Weight and TOPSIS Multicriteria Decision-Making Methods," Risks, MDPI, vol. 13(4), pages 1-41, March.
  • Handle: RePEc:gam:jrisks:v:13:y:2025:i:4:p:64-:d:1622005
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/13/4/64/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-9091/13/4/64/
    Download Restriction: no
    ---><---

    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:gam:jrisks:v:13:y:2025:i:4:p:64-:d:1622005. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.