Too good to be true: The effect of media coverage on ESG greenwashing via managerial myopia

This study examines the association between media coverage and corporate ESG greenwashing, highlighting the mediating role of managerial myopia. Using a panel dataset of 20,629 firm–year observations from Chinese listed firms between 2018 and 2023 and integrating institutional and agency theories, we find that media tone is positively associated with ESG greenwashing. Mediation tests provide evidence consistent with managerial myopia as an intervening channel. Heterogeneity tests indicate that this effect is more evident among firms audited by non-Big-4 auditors and firms at the maturity stage of the corporate life cycle. Additional tests indicate that the documented relationship is not driven by cross-sectional ownership differences. This study contributes to the ESG and corporate governance literature by incorporating media tone as an informal institutional force, identifying managerial myopia as a central mediating channel, and revealing the context-dependent nature of media influence in emerging markets.