IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v12y2025i1d10.1057_s41599-025-05107-0.html
   My bibliography  Save this article

Big data and firm greenwashing: evidence from China’s national big data comprehensive pilot zone

Author

Listed:
  • Jianjun Sun

    (Hainan University)

  • Nannan Zu

    (Hainan University)

  • Chao Zhang

    (Hainan University)

Abstract

Big data is playing an increasingly important role in addressing environmental challenges. Using the launch of China’s national big data comprehensive pilot zone in 2016 as an exogenous event, this paper employs the difference-in-differences method to examine the causal effect of big data on firm greenwashing. The regression result indicates that big data has an inhibitory effect on firm greenwashing. A plausible underlying mechanism is that big data enhances environmental performance and alleviates information asymmetry between the firm and stakeholders. The inhibitory effect is more pronounced in state-owned enterprises and those with high market competition. The findings better explain how the digital factor drives green development at the firm level.

Suggested Citation

  • Jianjun Sun & Nannan Zu & Chao Zhang, 2025. "Big data and firm greenwashing: evidence from China’s national big data comprehensive pilot zone," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-10, December.
  • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05107-0
    DOI: 10.1057/s41599-025-05107-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-025-05107-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41599-025-05107-0?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Wei Li & Weining Li & Veikko Seppänen & Timo Koivumäki, 2023. "Effects of greenwashing on financial performance: Moderation through local environmental regulation and media coverage," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 820-841, January.
    2. Wamba, Samuel Fosso & Dubey, Rameshwar & Gunasekaran, Angappa & Akter, Shahriar, 2020. "The performance effects of big data analytics and supply chain ambidexterity: The moderating effect of environmental dynamism," International Journal of Production Economics, Elsevier, vol. 222(C).
    3. Zhou, Kuo & Qu, Zhi & Liang, Jiayang & Tao, Yunqing & Zhu, Mengting, 2024. "Threat or shield: Environmental administrative penalties and corporate greenwashing," Finance Research Letters, Elsevier, vol. 61(C).
    4. He, Guanming & Li, Zhichao & Yu, Ling & Zhou, Zhanqiang, 2025. "Does commercial reform embracing digital technologies mitigate stock price crash risk?," Journal of Corporate Finance, Elsevier, vol. 91(C).
    5. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    6. Gray, Wayne B, 1987. "The Cost of Regulation: OSHA, EPA and the Productivity Slowdown," American Economic Review, American Economic Association, vol. 77(5), pages 998-1006, December.
    7. Mark Clatworthy & Michael Jones, 2003. "Financial reporting of good news and bad news: evidence from accounting narratives," Accounting and Business Research, Taylor & Francis Journals, vol. 33(3), pages 171-185.
    8. Shimshack, Jay P. & Ward, Michael B., 2005. "Regulator reputation, enforcement, and environmental compliance," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 519-540, November.
    9. Yue Wu & Kaifu Zhang & Jinhong Xie, 2020. "Bad Greenwashing, Good Greenwashing: Corporate Social Responsibility and Information Transparency," Management Science, INFORMS, vol. 66(7), pages 3095-3112, July.
    10. Claudio Vitari & Elisabetta Raguseo, 2020. "Big data analytics business value and firm performance: linking with environmental context," International Journal of Production Research, Taylor & Francis Journals, vol. 58(18), pages 5456-5476, September.
    11. Xie, Jiayue & Chen, Lu & Liu, Yan & Wang, Shengnan, 2023. "Does fintech inhibit corporate greenwashing behavior?-Evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).
    12. Liu, Qing & Qiu, Larry D., 2016. "Intermediate input imports and innovations: Evidence from Chinese firms' patent filings," Journal of International Economics, Elsevier, vol. 103(C), pages 166-183.
    13. Lynn Wu & Lorin Hitt & Bowen Lou, 2020. "Data Analytics, Innovation, and Firm Productivity," Management Science, INFORMS, vol. 66(5), pages 2017-2039, May.
    14. Claudio Vitari & Elisabetta Raguseo, 2020. "Big data analytics business value and firm performance: linking with environmental context," Post-Print hal-03511295, HAL.
    15. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    16. Magali Delmas & Michael W. Toffel, 2004. "Stakeholders and environmental management practices: an institutional framework," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 209-222, July.
    17. Zhang, Dongyang, 2024. "The pathway to curb greenwashing in sustainable growth: The role of artificial intelligence," Energy Economics, Elsevier, vol. 133(C).
    18. Yu, Ellen Pei-yi & Luu, Bac Van & Chen, Catherine Huirong, 2020. "Greenwashing in environmental, social and governance disclosures," Research in International Business and Finance, Elsevier, vol. 52(C).
    19. Hu, Xinwen & Hua, Renhai & Liu, Qingfu & Wang, Chuanjie, 2023. "The green fog: Environmental rating disagreement and corporate greenwashing," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    20. Han Lin & Saixing Zeng & Liangyan Wang & Hailiang Zou & Hanyang Ma, 2016. "How Does Environmental Irresponsibility Impair Corporate Reputation? A Multi‐Method Investigation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(6), pages 413-423, November.
    21. Yin, Lei & Yang, Yuanyuan, 2024. "How does digital finance influence corporate greenwashing behavior?," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 359-373.
    22. Peter Seele & Lucia Gatti, 2017. "Greenwashing Revisited: In Search of a Typology and Accusation‐Based Definition Incorporating Legitimacy Strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 239-252, February.
    23. Sudheer Chava, 2014. "Environmental Externalities and Cost of Capital," Management Science, INFORMS, vol. 60(9), pages 2223-2247, September.
    24. Zhihua Cheng & Feng Wang & Christine Keung & Yongxiu Bai, 2017. "Will Corporate Political Connection Influence the Environmental Information Disclosure Level? Based on the Panel Data of A-Shares from Listed Companies in Shanghai Stock Market," Journal of Business Ethics, Springer, vol. 143(1), pages 209-221, June.
    25. Cheng, Huifang & Cao, An & Hong, Chenxiang & Liu, Dengao & Wang, Mengying, 2025. "Can green investors improve the quality of corporate environmental information disclosure?," International Review of Economics & Finance, Elsevier, vol. 98(C).
    26. Hu, Shuo & Wang, Ailun & Du, Kerui, 2023. "Environmental tax reform and greenwashing: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 124(C).
    27. Gao, Qiang & Cheng, Changming & Sun, Guanglin, 2023. "Big data application, factor allocation, and green innovation in Chinese manufacturing enterprises," Technological Forecasting and Social Change, Elsevier, vol. 192(C).
    28. Bhattacharya, Utpal & Daouk, Hazem & Welker, Michael, 2003. "The World Price of Earnings Opacity," Working Papers 127185, Cornell University, Department of Applied Economics and Management.
    29. Zhang, Dongyang, 2023. "Subsidy expiration and greenwashing decision: Is there a role of bankruptcy risk?," Energy Economics, Elsevier, vol. 118(C).
    Full references (including those not matched with items on IDEAS)

    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. Xiong, Jiacai & Yang, Zelin & Wang, Qing Sophie, 2025. "Can non-punitive regulation curb corporate greenwashing?Evidence from a word embedding model," Research in International Business and Finance, Elsevier, vol. 76(C).
    2. Xue, Kunkun & Chen, Xiaoxiao & Sun, Peipei & Li, Yongqing, 2024. "Supply chain network centrality and corporate greenwashing behavior," Finance Research Letters, Elsevier, vol. 70(C).
    3. Li, Weiping & Mao, Zhuowei & Ren, Xiaohang & Liang, Jing, 2025. "Retail investor attention: Guardian of corporate ESG integrity or catalyst for greenwashing?," Energy Economics, Elsevier, vol. 144(C).
    4. Zhang, Mengzhi & He, Wenjian, 2025. "Encouraging or inhibiting: Can analyst attention reduce corporate greenwashing behavior?," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 943-962.
    5. Jiaying Li & Ying Fu & Ying Wu, 2024. "Advertising and Corporate Green Innovation: From the Perspective of Greenwashing," Sustainability, MDPI, vol. 16(23), pages 1-14, November.
    6. Jin, Xuanxuan & Qi, Hanying & Huang, Xin, 2024. "Green financial regulation and corporate strategic ESG behavior: Evidence from China," Finance Research Letters, Elsevier, vol. 65(C).
    7. Wang, Yuxi & Hu, Fangjia & Wang, Yunyun, 2024. "Analyst coverage and greenwashing: Evidence from Chinese A-Share listed corporations," International Review of Economics & Finance, Elsevier, vol. 94(C).
    8. Yin, Lei & Yang, Yuanyuan, 2024. "How does digital finance influence corporate greenwashing behavior?," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 359-373.
    9. Xiang, Yilin & Chen, Lu & Zhang, Zhenya & Sun, Xinyu, 2024. "Does perceived greenwashing promote or inhibit ethical voice? Effects of moral disengagement and perceived competitive pressure," Journal of Business Research, Elsevier, vol. 182(C).
    10. Francesca Bernini & Fabio La Rosa, 2024. "Research in the greenwashing field: concepts, theories, and potential impacts on economic and social value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 405-444, June.
    11. Jiang, Cuixia & Li, Xiuxiu & Xu, Qifa & Liu, Junhang, 2024. "Does environmental protection tax impact corporate ESG greenwashing? A quasi-natural experiment in China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 774-786.
    12. Yang, Minhua & Ma, Linkun & Gu, Yan & Wu, Wenfeng, 2025. "The impacts of green bonds on the green innovation: Evidence from the corporate green transformation in China," Emerging Markets Review, Elsevier, vol. 65(C).
    13. Li, Weiping & Shi, Chang & Xiao, Zhongyi & Zhang, Xuezhi, 2024. "Bridging the green gap: How digital financial inclusion affects corporate ESG greenwashing," Finance Research Letters, Elsevier, vol. 69(PA).
    14. Tian Luan, 2024. "A Review of Corporate Social Responsibility Decoupling and Its Impact: Evidence from China," Sustainability, MDPI, vol. 16(10), pages 1-17, May.
    15. Sun, Haibo & Bai, Tonghuan & Liu, Zhonglu, 2024. "Perceived policy uncertainty and enterprise greenwashing risk," Finance Research Letters, Elsevier, vol. 69(PA).
    16. Kiran, Madiha & Chughtai, Sumayya & Naeem, Muhammad Abubakr, 2024. "Navigating greenwashing in the G8: Insights into family-owned firms, technology innovation, and economic policy uncertainty," Research in International Business and Finance, Elsevier, vol. 71(C).
    17. Birindelli, Giuliana & Chiappini, Helen & Jalal, Raja Nabeel-Ud-Din, 2024. "Greenwashing, bank financial performance and the moderating role of gender diversity," Research in International Business and Finance, Elsevier, vol. 69(C).
    18. Yanhong Tang & Rui Yang & Yingwen Chen & Mengjin Du & Yichen Yang & Xin Miao, 2020. "Greenwashing of Local Government: The Human-Caused Risks in the Process of Environmental Information Disclosure in China," Sustainability, MDPI, vol. 12(16), pages 1-14, August.
    19. Yan Ma & Gen‐Fu Feng & Zhu‐jia Yin & Chun‐Ping Chang, 2025. "ESG disclosures, green innovation, and greenwashing: All for sustainable development?," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 1797-1815, April.
    20. Sabeen Hussain Bhatti & Wan Mohd Hirwani Wan Hussain & Jabran Khan & Shahbaz Sultan & Alberto Ferraris, 2024. "Exploring data-driven innovation: What’s missing in the relationship between big data analytics capabilities and supply chain innovation?," Annals of Operations Research, Springer, vol. 333(2), pages 799-824, February.

    More about this item

    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:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05107-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    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.