When green claims turn brown: The Impact of corporate greenwashing on biodiversity risk in China

Amidst an escalating global biodiversity crisis and a proliferation of corporate environmental claims, this study addresses a critical gap between symbolic corporate communication and its substantive ecological impact. We establish a causal link between corporate greenwashing and increased biodiversity risk using a panel of 17,076 firm-year observations for Chinese listed companies from 2015 to 2024. To ensure robust causal inference, we employ a rigorous identification strategy centered on a Multiple-Difference-in-Differences (M-DID) design, which is complemented by Propensity Score Matching (PSM), an Instrumental Variable (IV) approach, and placebo tests. Our findings reveal that greenwashing causally increases biodiversity risk through a dual-pathway mechanism. Internally, it fosters a "green technology innovation bubble," prioritizing patent quantity over quality. Externally, it degrades "environmental disclosure quality," shielding harmful operations from scrutiny. This detrimental relationship is attenuated by CEOs with green experience but exacerbated by managerial myopia. Our research bridges a crucial theoretical divide between impression management and real-world ecological outcomes, offering vital insights for regulators and investors seeking to curb specious environmentalism.