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Does corporate engagement in digital transformation influence greenwashing? Evidence from China

Reference Type: 

Journal Article

Lu, Zhenye, Yongjia Lin, and You Li. 2023. “Does Corporate Engagement in Digital Transformation Influence Greenwashing? Evidence from China.” Finance Research Letters 58 (December): 104558. https://doi.org/10.1016/j.frl.2023.104558.

This study examines how digital transformation (DT) influences corporate greenwashing behavior. Using a sample of Chinese listed companies from 2011 to 2021, we show that DT can significantly reduce corporate greenwashing behavior. We also show heterogeneity across firms, industries, and regions, and suggest that this relationship is particularly pronounced for state-owned enterprises, firms with high media attention and in industries with high carbon emissions, and highly developed regions. Our results are robust and show that DT plays an important role in shaping corporate greenwashing behavior in the context of China's fast-growing digital economy.

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