Work

Analyst coverage and greenwashing: Evidence from Chinese A-Share listed corporations

Year: 2024

Type: article

Abstract: Using empirical data from the Chinese capital market, this study demonstrates that analyst coverage mitigates firms' greenwashing behavior. However, the severity of greenwashing increases with a higher proportion of star analysts in the coverage. Heterogeneity analysis reveals that analyst coverage is particularly effective in reducing greenwashing in non-heavily polluting industries. Mechanism analysis indicates that this mitigating effect is achieved by enhancing corporate disclosure transparency and internal control effectiveness, thereby inhibiting greenwashing.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2024.103423

Authors: Yuxi Wang, Fangjia Hu, Yunyun Wang

Institution: Shanghai Normal University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,790

Funders: National Office for Philosophy and Social Sciences, Major Program of National Fund of Philosophy and Social Science of China