How does government open data suppress corporate ESG Greenwashing? Evidence from the dual mechanisms of financing constraints and external monitoring

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Authors: MINGFEI LIU, Ye Wang, Zongyi Yin
Cited by: 1
References: 20

Abstract

As a core framework for assessing corporate sustainability, environmental, social, and governance (ESG) performance has become a key benchmark linking cross-border capital markets and guiding sustainable investment. However, the widespread prevalence of ESG greenwashing in practice has seriously undermined the credibility of ESG evaluations and hindered the process of sustainable corporate development. This study systematically examines the impact of government open data initiatives on corporate ESG greenwashing and explores the underlying mechanisms through which such effects operate, thereby offering governance insights for promoting sustainable development. Using panel data on Chinese A-share listed firms from 2009 to 2024, we find that government open data significantly suppresses corporate ESG greenwashing. Mechanism analyses reveal that this inhibitory effect operates through two channels. Internally, open government data alleviate firms’ financing constraints, thereby weakening incentives to engage in greenwashing. Externally, enhanced data transparency strengthens external monitoring by regulators, investors, media, and the public, effectively constraining opportunistic ESG disclosures. Further heterogeneity analyses indicate that the governance effect of open data is more pronounced among firms with lower managerial ownership and weaker media attention. From the perspective of data factor allocation, this study highlights the positive role of government open data in curbing corporate ESG greenwashing and fostering sustainable governance mechanisms. The findings provide both theoretical support and practical guidance for addressing greenwashing behavior and advancing corporate sustainability strategies.

Fields of Study & Subjects

Sustainable Finance and Green Bonds Corporate Social Responsibility Reporting FinTech Crowdfunding Digital Finance

Publication details

Journal / source
International Review of Economics & Finance
Publisher
Elsevier BV
Volume
108
Pages
105185–105185
Publication date
31 March 2026
Language
EN