Bank-firm relationships and corporate ESG greenwashing.

This study explores how bank-firm relationships and executives with banking backgrounds influence greenwashing among Chinese A-share listed firms, based on Institutional and Agency Theories. Firms with bank shareholding or banking-experienced executives show a higher propensity for greenwashing, dri...

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Main Author: Hongyu Liu
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0324596
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author Hongyu Liu
author_facet Hongyu Liu
author_sort Hongyu Liu
collection DOAJ
description This study explores how bank-firm relationships and executives with banking backgrounds influence greenwashing among Chinese A-share listed firms, based on Institutional and Agency Theories. Firms with bank shareholding or banking-experienced executives show a higher propensity for greenwashing, driven by executive compensation structures tied to inflated ESG scores. Financialization amplifies symbolic ESG disclosures, while transparency reduces greenwashing. Heterogeneity analysis reveals that non-state-owned enterprises and firms in less financially developed regions are more affected. These findings highlight the need for robust governance and transparency to promote authentic ESG practices, offering insights into mitigating greenwashing in emerging markets.
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spelling doaj-art-9d0678bf089c4e808c704a666638d5812025-08-20T03:22:45ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01206e032459610.1371/journal.pone.0324596Bank-firm relationships and corporate ESG greenwashing.Hongyu LiuThis study explores how bank-firm relationships and executives with banking backgrounds influence greenwashing among Chinese A-share listed firms, based on Institutional and Agency Theories. Firms with bank shareholding or banking-experienced executives show a higher propensity for greenwashing, driven by executive compensation structures tied to inflated ESG scores. Financialization amplifies symbolic ESG disclosures, while transparency reduces greenwashing. Heterogeneity analysis reveals that non-state-owned enterprises and firms in less financially developed regions are more affected. These findings highlight the need for robust governance and transparency to promote authentic ESG practices, offering insights into mitigating greenwashing in emerging markets.https://doi.org/10.1371/journal.pone.0324596
spellingShingle Hongyu Liu
Bank-firm relationships and corporate ESG greenwashing.
PLoS ONE
title Bank-firm relationships and corporate ESG greenwashing.
title_full Bank-firm relationships and corporate ESG greenwashing.
title_fullStr Bank-firm relationships and corporate ESG greenwashing.
title_full_unstemmed Bank-firm relationships and corporate ESG greenwashing.
title_short Bank-firm relationships and corporate ESG greenwashing.
title_sort bank firm relationships and corporate esg greenwashing
url https://doi.org/10.1371/journal.pone.0324596
work_keys_str_mv AT hongyuliu bankfirmrelationshipsandcorporateesggreenwashing