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The long arm of the Leviathan: Common ownership and corporate greenwashing

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  • Wang, Li
  • Zhu, Jingran
  • Ji, Wenjun

Abstract

Identifying and suppressing corporate greenwashing is crucial for sustainable development. We investigate the effect of common ownership on corporate greenwashing using listed firms in China from 2010 to 2023. Our findings indicate that common ownership significantly reduces greenwashing, and this effect is primarily driven by common state ownership. Overall, our findings reveal the important role of ownership heterogeneity in understanding the impact of common ownership on corporate behavior in transitional economies.

Suggested Citation

  • Wang, Li & Zhu, Jingran & Ji, Wenjun, 2025. "The long arm of the Leviathan: Common ownership and corporate greenwashing," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001412
    DOI: 10.1016/j.frl.2025.106876
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    References listed on IDEAS

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