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Greenwashing and product market competition

Author

Listed:
  • Mohamed Arouri
  • Sadok El Ghoul
  • Mathieu Gomes

    (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne)

Abstract

This study examines the relationship between corporate greenwashing and product market competition (PMC). Using an unbalanced panel of 324 US fi rms over the 2005-2015 period, we fi nd that the negative impact of PMC on greenwashing is conditional on the level of environmental costs. Our results suggest that PMC is an effective disciplinary mechanism for achieving economic efficiency --in the case of fi rms featuring a high level of environmental costs-- through an increase in the disclosure of reliable and material information.

Suggested Citation

  • Mohamed Arouri & Sadok El Ghoul & Mathieu Gomes, 2021. "Greenwashing and product market competition," Post-Print hal-03106623, HAL.
    • Handle: RePEc:hal:journl:hal-03106623
    Note: View the original document on HAL open archive server: https://hal.science/hal-03106623
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    References listed on IDEAS

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    More about this item

    Keywords

    Greenwashing; Product market competition; Environmental cost;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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