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Friendly press, fading greens: The effect of media connection on firm greenwashing

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  • Dong, Hao
  • Li, Chengcheng
  • Wang, Xiaoqiong

Abstract

This paper examines the relationship between top executives’ social ties with the media and firm greenwashing activities. We find that firms with media connections are more likely to engage in greenwashing practices. Although these ties enhance environmental, social, and governance (ESG) disclosures, they do not significantly improve actual ESG performance. Media connections improve a firm’s ESG disclosure by enhancing its ability to package ESG reports and disseminate “soft” and favorable information about the firm. The effect of media connections on greenwashing is more pronounced among firms in polluting industries, those subject to mandatory ESG disclosure requirements, and firms attracting high investor attention. Our findings support the strategic media management hypothesis.

Suggested Citation

  • Dong, Hao & Li, Chengcheng & Wang, Xiaoqiong, 2025. "Friendly press, fading greens: The effect of media connection on firm greenwashing," Global Finance Journal, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:glofin:v:68:y:2025:i:c:s1044028325001061
    DOI: 10.1016/j.gfj.2025.101179
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