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Financial crime risks in environmental, social, and governance (ESG) investment: Perspectives on greenwashing and false disclosure

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  • Wang, Luyang
  • Tang, Ruoyu
  • Zhou, Xiang

Abstract

Based on data from Chinese listed companies between 2010 and 2023, this paper explores the relationship among greenwashing behaviors in ESG investment, false disclosures, and financial crime risks. The research findings indicate that greenwashing behaviors in ESG investment increase financial crime risks; similarly, false disclosures in ESG investment also elevate financial crime risks. Furthermore, digital governance plays a significant moderating role in the relationship between greenwashing behaviors, false disclosures, and financial crime risks within ESG investment.

Suggested Citation

  • Wang, Luyang & Tang, Ruoyu & Zhou, Xiang, 2025. "Financial crime risks in environmental, social, and governance (ESG) investment: Perspectives on greenwashing and false disclosure," Finance Research Letters, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pa:s1544612325011146
    DOI: 10.1016/j.frl.2025.107856
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    References listed on IDEAS

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    3. Xiaotong Zhang, 2025. "Managerial Climate Attention and Systemic Risk of New Energy Vehicle Firms: Evidence from China," Sustainability, MDPI, vol. 17(17), pages 1-22, September.

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