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Can environmental regulation inhibit enterprises` greenwashing? Evidence from implementing the New Environment Protection Law

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  • Li, Yue
  • Deng, Zhongwen

Abstract

This research examines, conceptually and empirically, the impact of environmental regulation on corporate greenwashing. This research utilizes the New Environmental Protection Law as a natural experiment to investigate the causal relationship between environmental legislation and corporate greenwashing actions from 2009 to 2023. The results suggest that implementing the new Environmental Protection Law can deter corporate greenwashing by promoting total factor productivity and improving internal management capabilities.

Suggested Citation

  • Li, Yue & Deng, Zhongwen, 2025. "Can environmental regulation inhibit enterprises` greenwashing? Evidence from implementing the New Environment Protection Law," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007354
    DOI: 10.1016/j.frl.2025.107476
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    Cited by:

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    3. Xue, Fengrui & Zhu, Tianqi, 2025. "Research on the impact and internal mechanism of intelligent technology on industrial chain resilience," Finance Research Letters, Elsevier, vol. 84(C).

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