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Benefits of hypocrisy: Do managers gain more from greenwashing

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  • Weixin Dong
  • Youcai Yang
  • Yan Chen

Abstract

This study finds that corporate greenwashing raises executive compensation. Mechanism analysis indicates that greenwashing enhances executive compensation by improving short-term performance and enhancing executive reputation. In addition, this effect is more pronounced in non-state-owned enterprises, companies with equity incentive plans, and firms that grant restricted stock.

Suggested Citation

  • Weixin Dong & Youcai Yang & Yan Chen, 2026. "Benefits of hypocrisy: Do managers gain more from greenwashing," PLOS ONE, Public Library of Science, vol. 21(7), pages 1-15, July.
    • Handle: RePEc:plo:pone00:0353235
    DOI: 10.1371/journal.pone.0353235
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    References listed on IDEAS

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    1. Lin, Xudong & Zhu, Hao & Meng, Yiqun, 2023. "ESG greenwashing and equity mispricing: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PD).
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