The influence of public environmental concern on corporate greenwashing: an examination of companies listed in China

This study investigates the impact of public environmental concern on corporate greenwashing behavior, emphasizing the underlying mechanisms. Analysis of panel data from China’s A-share listed companies (2012–2022) indicates that public scrutiny substantially curtails greenwashing. Two primary media...

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Main Authors: Hongbo Fu, Rajah Rasiah, Guangji Wang, Yi Zhang
Format: Article
Language:English
Published: IOP Publishing 2025-01-01
Series:Environmental Research Communications
Subjects:
Online Access:https://doi.org/10.1088/2515-7620/adca97
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author Hongbo Fu
Rajah Rasiah
Guangji Wang
Yi Zhang
author_facet Hongbo Fu
Rajah Rasiah
Guangji Wang
Yi Zhang
author_sort Hongbo Fu
collection DOAJ
description This study investigates the impact of public environmental concern on corporate greenwashing behavior, emphasizing the underlying mechanisms. Analysis of panel data from China’s A-share listed companies (2012–2022) indicates that public scrutiny substantially curtails greenwashing. Two primary mediating mechanisms are identified: environmental penalties and green development. The environmental penalties mechanism suggests that both the strengthening of environmental penalties in the region and environmental compliance by corporate are pathways through which public environmental concern can effectively mitigate corporate greenwashing; while the green development mechanism suggests that the improvement of the level of green innovation by corporate or the greening of their investment strategies are mechanisms through which public environmental concerns can reduce corporate greenwashing. Heterogeneity analysis indicates more pronounced effects in industries with significant pollution and in environments characterized by considerable uncertainty. Non-state-owned firms exhibit heightened responsiveness to public concern compared to state-owned enterprises. This study enhances comprehension of corporate greenwashing and offers evidence for formulating distinct environmental strategies.
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spelling doaj-art-3e46127fe36748e68d9747d22c32d2a62025-08-20T03:18:05ZengIOP PublishingEnvironmental Research Communications2515-76202025-01-017404502310.1088/2515-7620/adca97The influence of public environmental concern on corporate greenwashing: an examination of companies listed in ChinaHongbo Fu0https://orcid.org/0009-0006-0649-017XRajah Rasiah1Guangji Wang2Yi Zhang3Asia Europe Institute, University of Malaya , Kuala Lumpur, 50603, MalaysiaAsia Europe Institute, University of Malaya , Kuala Lumpur, 50603, MalaysiaZhengzhou University of Light Industry , No. 136 Ke Xue Avenue, Zhengzhou, Henan Province, 450000, People’s Republic of ChinaFaculty of Business and Economics, University of Malaya , Kuala Lumpur, 50603, MalaysiaThis study investigates the impact of public environmental concern on corporate greenwashing behavior, emphasizing the underlying mechanisms. Analysis of panel data from China’s A-share listed companies (2012–2022) indicates that public scrutiny substantially curtails greenwashing. Two primary mediating mechanisms are identified: environmental penalties and green development. The environmental penalties mechanism suggests that both the strengthening of environmental penalties in the region and environmental compliance by corporate are pathways through which public environmental concern can effectively mitigate corporate greenwashing; while the green development mechanism suggests that the improvement of the level of green innovation by corporate or the greening of their investment strategies are mechanisms through which public environmental concerns can reduce corporate greenwashing. Heterogeneity analysis indicates more pronounced effects in industries with significant pollution and in environments characterized by considerable uncertainty. Non-state-owned firms exhibit heightened responsiveness to public concern compared to state-owned enterprises. This study enhances comprehension of corporate greenwashing and offers evidence for formulating distinct environmental strategies.https://doi.org/10.1088/2515-7620/adca97corporate greenwashingheterogeneity analysisenvironmental penaltiesgreen developmentpublic environmental concern
spellingShingle Hongbo Fu
Rajah Rasiah
Guangji Wang
Yi Zhang
The influence of public environmental concern on corporate greenwashing: an examination of companies listed in China
Environmental Research Communications
corporate greenwashing
heterogeneity analysis
environmental penalties
green development
public environmental concern
title The influence of public environmental concern on corporate greenwashing: an examination of companies listed in China
title_full The influence of public environmental concern on corporate greenwashing: an examination of companies listed in China
title_fullStr The influence of public environmental concern on corporate greenwashing: an examination of companies listed in China
title_full_unstemmed The influence of public environmental concern on corporate greenwashing: an examination of companies listed in China
title_short The influence of public environmental concern on corporate greenwashing: an examination of companies listed in China
title_sort influence of public environmental concern on corporate greenwashing an examination of companies listed in china
topic corporate greenwashing
heterogeneity analysis
environmental penalties
green development
public environmental concern
url https://doi.org/10.1088/2515-7620/adca97
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