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Can local executives effectively curb corporate "greenwashing" ?

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  • Hu, Yaodan
  • Chen, Sirui
  • Zheng, Wen
  • Zhu, Zhen

Abstract

This study investigates whether local executives help curb corporate "Greenwashing" using a sample of China’s non-financial A-share listed firms over 2008–2022. Results indicate that firms led by local executives are significantly less likely to engage in greenwashing. This relationship holds under multiple robustness checks. Mechanism analysis reveals that the curbing effect is driven by executives' hometown identity, reputational pressure, and long-term decision-making. The results highlight the importance of informal-governance via executive regional ties in promoting credible environmental disclosure and reducing opportunistic environmental claims.

Suggested Citation

  • Hu, Yaodan & Chen, Sirui & Zheng, Wen & Zhu, Zhen, 2026. "Can local executives effectively curb corporate "greenwashing" ?," Finance Research Letters, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finlet:v:92:y:2026:i:c:s1544612326001236
    DOI: 10.1016/j.frl.2026.109592
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