Research on Corporate Greenwashing Behavior: Drivers and Consequences

With the advancement of sustainable development concepts, ESG (Environmental, Social and Governance) disclosure has become a key standard for measuring corporate social responsibility. However, some companies engage in “greenwashing” by exaggerating or selectively presenting information in order to create a false eco-friendly image, drawing widespread attention from regulators and academia. Based on data from listed companies in China’s home appliance industry from 2014 to 2021, this study explores the driving factors and economic consequences of corporate greenwashing. The empirical results show that strong size and age significantly promote greenwashing behavior, while SOEs are less likely to engage in greenwashing than non-SOEs. Further analysis reveals that greenwashing not only significantly reduces financial performance but also harms market performance. This research enriches the theoretical understanding of greenwashing, uncovering the underlying logic of how companies selectively adopt symbolic coping strategies when facing legitimate pressures and disclosure constraints. It also provides practical insights for regulators to refine ESG policies and improve the quality of environmental disclosure.