IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v191y2025ics0148296325000815.html

Unveiling the green veil: Customer green relational capital and tone ambiguity in supplier environmental disclosure

Author

Listed:
  • Xi, Mengjie
  • Fang, Wei
  • Liu, Yang
  • Feng, Taiwen
  • Bhattacharya, Ananya

Abstract

Some suppliers use ambiguous language in their environmental disclosure to obscure their actual environmental performance. This ambiguity may lead customers to misjudge suppliers’ environmental practices, thereby increasing customers’ sustainability and reputational risks. Therefore, it is critical for customers to understand how to mitigate tone ambiguity in suppliers’ environmental disclosure. Drawing on social capital theory, this study explores the impact of customer green relational capital on the tone ambiguity in supplier environmental disclosure. Using data from 2503 unique customer–supplier dyads year observations of Chinese listed companies between 2010 and 2022, this study finds that customer green relational capital significantly reduces tone ambiguity in supplier environmental disclosure. Furthermore, this inhibitory effect is more pronounced when customer network centrality or customer–supplier environmental strategy orientation fit is high. By introducing the concept of tone ambiguity, this study broadens the scope of environmental disclosure research and enriches the literature on sustainable supply chain management.

Suggested Citation

  • Xi, Mengjie & Fang, Wei & Liu, Yang & Feng, Taiwen & Bhattacharya, Ananya, 2025. "Unveiling the green veil: Customer green relational capital and tone ambiguity in supplier environmental disclosure," Journal of Business Research, Elsevier, vol. 191(C).
    • Handle: RePEc:eee:jbrese:v:191:y:2025:i:c:s0148296325000815
    DOI: 10.1016/j.jbusres.2025.115258
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296325000815
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2025.115258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Janne Järvinen & Matias Laine & Timo Hyvönen & Hannele Kantola, 2022. "Just Look at the Numbers: A Case Study on Quantification in Corporate Environmental Disclosures," Journal of Business Ethics, Springer, vol. 175(1), pages 23-44, January.
    2. George Onofrei & Hung M. Nguyen & Min Zhang & Brian Fynes, 2020. "Building supply chain relational capital: The impact of supplier and customer leveraging on innovation performance," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3422-3434, December.
    3. Zhongju Liao, 2018. "Social capital and firms' environmental innovations: The moderating role of environmental scanning," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1493-1501, December.
    4. Yingying Xin & Xiao Zeng & Zhengying Luo, 2022. "Customers' annual report tone and suppliers' innovation decisions: evidence from China," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 26(6), pages 1570-1602, April.
    5. Mohammad Alghababsheh & David Gallear, 2021. "Socially Sustainable Supply Chain Management and Suppliers’ Social Performance: The Role of Social Capital," Journal of Business Ethics, Springer, vol. 173(4), pages 855-875, November.
    6. Pyo, Tae-Hyung & Tamrakar, Chanchal & Lee, Jae Young & Choi, Yun Seob, 2023. "Is social capital always “Capital”?: Measuring and leveraging social capital in online user communities for in-group diffusion," Journal of Business Research, Elsevier, vol. 158(C).
    7. Wang, Liukai & Li, Min & Wang, Weiqing & Gong, Yu & Xiong, Yu, 2023. "Green innovation output in the supply chain network with environmental information disclosure: An empirical analysis of Chinese listed firms," International Journal of Production Economics, Elsevier, vol. 256(C).
    8. Kira R. Fabrizio & Eun-Hee Kim, 2019. "Reluctant Disclosure and Transparency: Evidence from Environmental Disclosures," Organization Science, INFORMS, vol. 30(6), pages 1207-1231, November.
    9. Hsihui Chang & Sheng Liu & Raj Mashruwala, 2022. "Customer Bargaining Power, Strategic Fit, and Supplier Performance," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1492-1509, April.
    10. Peter M. Clarkson & Michael B. Overell & Larelle Chapple, 2011. "Environmental Reporting and its Relation to Corporate Environmental Performance," Abacus, Accounting Foundation, University of Sydney, vol. 47(1), pages 27-60, March.
    11. Ertugrul, Mine & Lei, Jin & Qiu, Jiaping & Wan, Chi, 2017. "Annual Report Readability, Tone Ambiguity, and the Cost of Borrowing," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 52(2), pages 811-836, April.
    12. Samuel B. Bonsall & Brian P. Miller, 2017. "The impact of narrative disclosure readability on bond ratings and the cost of debt," Review of Accounting Studies, Springer, vol. 22(2), pages 608-643, June.
    13. Tamanna Dalwai & Syeeda Shafiya Mohammadi & Gaitri Chugh & Mahdi Salehi, 2021. "Does intellectual capital and corporate governance have an impact on annual report readability? Evidence from an emerging market," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 18(9), pages 2402-2437, July.
    14. Chahrazad Abdallah & Ann Langley, 2014. "The Double Edge of Ambiguity in Strategic Planning," Journal of Management Studies, Wiley Blackwell, vol. 51(2), pages 235-264, March.
    15. Yang, Yang & Jiang, Yan, 2023. "Buyer-supplier CSR alignment and firm performance: A contingency theory perspective," Journal of Business Research, Elsevier, vol. 154(C).
    16. Kaveh Asiaei & Neale G O'Connor & Omid Barani & Mahesh Joshi, 2023. "Green intellectual capital and ambidextrous green innovation: The impact on environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 369-386, January.
    17. Xi, Mengjie & Liu, Yang & Fang, Wei & Feng, Taiwen, 2024. "Intelligent manufacturing for strengthening operational resilience during the COVID-19 pandemic: A dynamic capability theory perspective," International Journal of Production Economics, Elsevier, vol. 267(C).
    18. Zhongju Liao, 2018. "Market Orientation and FIRMS' Environmental Innovation: The Moderating Role of Environmental Attitude," Business Strategy and the Environment, Wiley Blackwell, vol. 27(1), pages 117-127, January.
    19. An, Yi & Davey, Howard & Eggleton, Ian R.C. & Wang, Zhuquan, 2015. "Intellectual capital disclosure and the information gap: Evidence from China," Advances in accounting, Elsevier, vol. 31(2), pages 179-187.
    20. Siying Long & Zhongju Liao, 2023. "Green relational capital, integration capabilities and environmental innovation adoption: The moderating role of normative pressures," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1570-1580, June.
    21. Xing, Chao & Zhang, Yuming & Tripe, David, 2021. "Green credit policy and corporate access to bank loans in China: The role of environmental disclosure and green innovation," International Review of Financial Analysis, Elsevier, vol. 77(C).
    22. Katrina Lintukangas & Heli Arminen & Anni-Kaisa Kähkönen & Elina Karttunen, 2023. "Determinants of Supply Chain Engagement in Carbon Management," Journal of Business Ethics, Springer, vol. 186(1), pages 87-104, August.
    23. Lee, Michael T. & Raschke, Robyn L., 2023. "Stakeholder legitimacy in firm greening and financial performance: What about greenwashing temptations?☆," Journal of Business Research, Elsevier, vol. 155(PB).
    24. Steinmo, Marianne & Rasmussen, Einar, 2018. "The interplay of cognitive and relational social capital dimensions in university-industry collaboration: Overcoming the experience barrier," Research Policy, Elsevier, vol. 47(10), pages 1964-1974.
    25. Kemin Wang & Xiaoyun Yu & Bohui Zhang, 2023. "Panda Games: Corporate Disclosure in the Eclipse of Search," Management Science, INFORMS, vol. 69(6), pages 3263-3284, June.
    26. Beynon, Malcolm J. & Jones, Paul & Pickernell, David, 2020. "Country-level entrepreneurial attitudes and activity through the years: A panel data analysis using fsQCA," Journal of Business Research, Elsevier, vol. 115(C), pages 443-455.
    27. Tim Loughran & Bill Mcdonald, 2011. "When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10‐Ks," Journal of Finance, American Finance Association, vol. 66(1), pages 35-65, February.
    28. Yingying Xin & Xiao Zeng & Zhengying Luo, 2022. "Customers' tone in MD&A disclosure and suppliers' inventory efficiency: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3833-3853, December.
    29. Christine A. Mallin & Giovanna Michelon, 2011. "Board reputation attributes and corporate social performance: an empirical investigation of the US Best Corporate Citizens," Accounting and Business Research, Taylor & Francis Journals, vol. 41(2), pages 119-144, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ayman wael Al‐khatib, 2025. "Toward Achieving the Sustainable Development Goals: The Roles of Digital Human Capital, Circular Supply Chain Practices, Frugal Innovation, and the Moderating Effect of Relational Capital," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(6), pages 7974-7991, December.
    2. Rui Yang & Jieyu Wang & Taiwen Feng, 2025. "The Influence of Power on Manufacturers' Social Responsibility Towards Suppliers in Supply Chains," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(4), pages 5401-5419, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soliman, Marwa & Ben-Amar, Walid, 2022. "Corporate social responsibility orientation and textual features of financial disclosures," International Review of Financial Analysis, Elsevier, vol. 84(C).
    2. Hossain, Amir & Bose, Sudipta & Shamsuddin, Abul, 2025. "Do integrated report readability and tone convey value relevant information? International evidence," Journal of Contemporary Accounting and Economics, Elsevier, vol. 21(3).
    3. Chen, Jean Jinghan & Song, Peiyang & Loi, Fai Lim, 2024. "Strategic forward-looking nonearnings disclosure and overinvestment," The British Accounting Review, Elsevier, vol. 56(6).
    4. Akhilesh Bajaj & Lori N. K. Leonard & Li Sun & Zhenze Xing, 2023. "Corporate social responsibility and annual report reading difficulty," Review of Quantitative Finance and Accounting, Springer, vol. 60(4), pages 1393-1428, May.
    5. Mumtaheena Anwar & Elisabeth Sinnewe & Annette Quayle, 2025. "Environmental Disclosure Tone and Analyst Forecast Behaviour: A Study of the EU Nonfinancial Reporting Directive," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(4), pages 3574-3604, December.
    6. Nadine Gatzert & Dinah Heidinger, 2020. "An Empirical Analysis of Market Reactions to the First Solvency and Financial Condition Reports in the European Insurance Industry," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(2), pages 407-436, June.
    7. Li, Ying & Huang, Qianqian & Yuan, Tao, 2025. "Corporate voluntary disclosure via WeChat," Journal of Banking & Finance, Elsevier, vol. 176(C).
    8. Gounopoulos, Dimitrios & Huang, Winifred & Yang, Min, 2025. "Innovation and annual report readability," Research Policy, Elsevier, vol. 54(8).
    9. Li, Ruiqian & Wu, Haiyun & Zhong, Ma & Lan, Hao, 2024. "Strategic tone management in ESG reports and ESG risk," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    10. Ahsan Habib & Mostafa Monzur Hasan, 2020. "Business strategies and annual report readability," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(3), pages 2513-2547, September.
    11. Balachandran, Balasingham & Faff, Robert W. & Minnick, Kristina & Shams, Syed, 2025. "Does the readability of target firms' annual reports matter to bidders?," International Review of Financial Analysis, Elsevier, vol. 105(C).
    12. Cano-Rodríguez, Manuel & Moreno, Alonso, 2026. "Religion and the readability of textual financial disclosures," Research in International Business and Finance, Elsevier, vol. 81(C).
    13. Hasan, Mostafa Monzur & Habib, Ahsan, 2020. "Readability of narrative disclosures, and corporate liquidity and payout policies," International Review of Financial Analysis, Elsevier, vol. 68(C).
    14. Yao, Kai & Chevapatrakul, Thanaset & Nguyen, Thach Vu Hong & Yin, Shiyan, 2026. "Uncertainty words and corporate information environment," Research in International Business and Finance, Elsevier, vol. 81(C).
    15. Jieyan Fang-Klingler, 2019. "Impact of Readability on Corporate Bond Market," JRFM, MDPI, vol. 12(4), pages 1-18, December.
    16. Fahd Alduais & Nashat Ali Almasria & Abeer Samara & Ali Masadeh, 2022. "Conciseness, Financial Disclosure, and Market Reaction: A Textual Analysis of Annual Reports in Listed Chinese Companies," IJFS, MDPI, vol. 10(4), pages 1-22, November.
    17. Chen, Tsung-Kang & Hao, Yun & Chang, Ting-Ru & Lin, Yu-Chun, 2025. "Foreseeing bankruptcy: A novel perspective based on the uncertainty of text-based communicative value of annual reports," Finance Research Letters, Elsevier, vol. 84(C).
    18. Sun, Li & Johnson, Grace & Bradley, Wray, 2022. "CEO power and annual report reading difficulty," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(2).
    19. Chen, Xin & Park, June Woo & Tsang, Albert & Xin, Yingying, 2025. "CEO left-handedness and readability," International Review of Financial Analysis, Elsevier, vol. 105(C).
    20. Sun, Li, 2023. "Asset redeployability and readability of annual report," Research in International Business and Finance, Elsevier, vol. 64(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:191:y:2025:i:c:s0148296325000815. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.