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Can the level of green consumption restrain listed companies’ “greenwashing” behavior? An analysis of the moderating effect of green credit

Author

Listed:
  • Du, Yu
  • Li, Zhiwei
  • He, Yan

Abstract

Against the backdrop of deepening implementation of the "Dual Carbon" strategy and increasing awareness of green consumption, corporate "greenwashing" behaviors have attracted growing social attention. Using Chinese A-share listed companies from 2011 to 2023 as the sample, this paper systematically analyzes whether the level of green consumption can effectively restrain corporate greenwashing behaviors. It also introduces green credit as a moderating variable to explore its role within the green governance mechanism. The empirical results show that the level of green consumption significantly suppresses corporate greenwashing, and this conclusion remains robust after a series of consistency checks. In addition, green credit strengthens the inhibitory effect of green consumption on corporate greenwashing behaviors. Further heterogeneity analysis reveals that the restraining effect of green consumption on greenwashing is more pronounced in the central and western regions and among state-owned enterprises. This study not only enriches the theoretical connotation of external constraints in green governance, but also provides micro-level empirical support for improving green financial policies and consumption guidance.

Suggested Citation

  • Du, Yu & Li, Zhiwei & He, Yan, 2025. "Can the level of green consumption restrain listed companies’ “greenwashing” behavior? An analysis of the moderating effect of green credit," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325016733
    DOI: 10.1016/j.frl.2025.108419
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    References listed on IDEAS

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