Can non-punitive regulation curb corporate greenwashing?Evidence from a word embedding model

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE Research in International Business and Finance Pub Date : 2025-03-12 DOI:10.1016/j.ribaf.2025.102861

Jiacai Xiong , Zelin Yang , Qing Sophie Wang

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Abstract

This study examines the impact of non-punitive regulations on corporate greenwashing. We employ a word embedding model to quantify greenwashing levels in Chinese A-share listed companies from 2015 to 2021. Using comment letters issued by stock exchanges as a proxy for non-punitive intervention, our finding reveals their effectiveness in deterring greenwashing behavior. The results remain robust after a battery of sensitivity tests. We posit three potential mechanisms underlying this effect: enhanced information transparency, increased media scrutiny, and mitigated agency problems within firms. The impact of comment letters is particularly pronounced in firms with a higher propensity for greenwashing, including private and smaller companies, those with limited analyst coverage, firms operating in polluting or highly competitive industries, and regions with lower environmental transparency or market development. Overall, this study contributes to the understanding of non-punitive regulation's role in shaping corporate environmental practices and provides valuable insights for mitigating greenwashing.

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance