Does Confucian culture inhibit corporate greenwashing behavior? Evidence from China

With the accelerating global pursuit of sustainable development gaining unprecedented traction, the practice of corporate greenwashing has become a significant restraining factor on developing the green economy. This article selects data from A-share listed companies to study how Confucian culture affects corporate greenwashing behaviors and the mechanisms. The findings of this study indicate that Confucian culture significantly inhibits corporate greenwashing behaviors. This cultural influence appears to function, as it increases media scrutiny and encourages ESG activism among institutional investors. Government environmental regulations amplify this effect, while a company's innovation efficiency appears to partially counteract it. We further observe that Confucian culture's restraining influence on greenwashing is more significant in larger, state-owned enterprises located in China's eastern and central regions. However, increased media attention is correlated with more greenwashing behaviors among smaller firms. These findings offer valuable insights, as they support the promotion of Confucian-based management practices, and they also back the transition of corporations toward genuinely green transformations.