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Perceived policy uncertainty and enterprise greenwashing risk

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  • Sun, Haibo
  • Bai, Tonghuan
  • Liu, Zhonglu

Abstract

Using data of Chinese A-share listed enterprises from 2009 to 2022, this study analyzes the impact of perceived policy uncertainty on enterprise greenwashing risk. The research identifies a significant positive correlation between perceived policy uncertainty and greenwashing risk. The mechanism test shows that strong perceived policy uncertainty increases enterprise greenwashing risk by increasing financial risk and financing constraints. In addition, overcoming managerial myopia and encouraging green management innovation are key to avoiding enterprise greenwashing risk in an uncertain policy environment. The paper's conclusions offer the Chinese government information to improve policy coherence and prevent enterprise greenwashing risk.

Suggested Citation

  • Sun, Haibo & Bai, Tonghuan & Liu, Zhonglu, 2024. "Perceived policy uncertainty and enterprise greenwashing risk," Finance Research Letters, Elsevier, vol. 69(PA).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011772
    DOI: 10.1016/j.frl.2024.106148
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    References listed on IDEAS

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    1. Wang, Yuxi & Hu, Fangjia & Wang, Yunyun, 2026. "Climate policy uncertainty and corporate greenwashing: Developing a new metric for selective investment practices," Research in International Business and Finance, Elsevier, vol. 81(C).
    2. Yang, Jichen & Gu, Yali, 2024. "Peer spillovers of environmental penalties - Evidence from green mergers and acquisitions," Finance Research Letters, Elsevier, vol. 69(PB).
    3. Li, Jiapei & Chen, Chuangbin & Wu, Zhenrui, 2025. "Asymmetric credit risk pathways in china’s green bond market: A Conjunctural analysis using modified PFM and fsQCA," Finance Research Letters, Elsevier, vol. 83(C).

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