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Does executive gender diversity culture inhibit corporate greenwashing behavior? The effect of informal institutions

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  • Nepal, Rabindra
  • Deng, Youyi
  • Dong, Kangyin
  • Goutte, Stéphane

Abstract

When the issues of gender equality and environmental protection become hot topics in society, exploring the influence of corporate gender diversity culture on corporate greenwashing can satisfy societal demands and corporate development. This paper examines the impact of corporate executive gender diversity culture (CEGDC) on corporate greenwashing based on 833 listed Chinese companies covering 2010–2020. Besides, considering the importance of informal institutions and green innovation behavior on enterprise development and construction, we further explore the mediating role of both, thus deepening the research on corporate informal institutions and green innovation. The results show that, first, CEGDC can reduce corporate greenwashing, and these findings remain valid even after robustness tests using the instrumental variable method. Second, informal institutions and green innovation behaviors play an important role in reducing corporate greenwashing. Specifically, female executives can reduce corporate greenwashing behaviors by enhancing executives' green cognition and promoting green innovation. Finally, the heterogeneity study found that when faced with strict external environmental regulation, the CEGDC can play a more obvious effect. In addition, CEGDC has mainly decreased greenwashing in corporations with small-sized and higher loan capacities.

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  • Nepal, Rabindra & Deng, Youyi & Dong, Kangyin & Goutte, Stéphane, 2025. "Does executive gender diversity culture inhibit corporate greenwashing behavior? The effect of informal institutions," International Review of Financial Analysis, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:finana:v:97:y:2025:i:c:s1057521924008202
    DOI: 10.1016/j.irfa.2024.103888
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    More about this item

    Keywords

    CEGDC; Corporate greenwashing; Informal institutions; Green innovation behaviors;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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