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Unveiling greenwashing trends: The curious effect of digital-driven M&As among listed Chinese firms

Author

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  • Xu, Jinhua
  • Cai, Zhehui
  • Li, Xiaoxia

Abstract

Greenwashing poses a significant challenge to corporate green transformation and broader societal sustainability efforts. This study examines the governance role of digital-driven mergers and acquisitions (M&As) in curbing corporate greenwashing behavior, using the multi-period difference-in-differences model. Our findings indicate that digital-driven M&As significantly reduce greenwashing. The mechanism analysis reveals that these effects are mediated through digital competitiveness, improved corporate governance, and enhanced transparency. Additionally, the impact of digital-driven M&As on greenwashing is particularly pronounced in state-owned enterprises (SOEs) and those operating in highly polluting industries. Media oversight and regional digital economy development further amplify the effectiveness of digital-driven M&As in constraining greenwashing. This study offers theoretical contributions and practical policy recommendations for promoting digital investment and enhancing greenwashing governance.

Suggested Citation

  • Xu, Jinhua & Cai, Zhehui & Li, Xiaoxia, 2025. "Unveiling greenwashing trends: The curious effect of digital-driven M&As among listed Chinese firms," Research in International Business and Finance, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:riibaf:v:80:y:2025:i:c:s0275531925003964
    DOI: 10.1016/j.ribaf.2025.103140
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