IDEAS home Printed from https://ideas.repec.org/a/taf/rcjaxx/v12y2024i3p615-639.html
   My bibliography  Save this article

Does ESG report greenwashing increase stock price crash risk?

Author

Listed:
  • Guangrui Liu
  • Hao Qian
  • Yong Shi
  • Yu Zhang
  • Fengyuan Wu

Abstract

From the perspective of non-financial information greenwashing, this paper investigates the impact mechanism of environmental, social and governance (ESG) report greenwashing on stock price crash risk. The results indicate that ESG report greenwashing increases the stock price crash risk. In high earnings management companies, ESG report greenwashing is positively correlated with stock price crash risk, and ESG report greenwashing and earnings management are complementary. Further analysis shows that better internal and external corporate governance can suppress the impact of ESG greenwashing. In addition, in the voluntary disclosure and private enterprise samples, ESG report greenwashing has a greater impact on the stock price crash risk. Mechanism analysis found that the greenwashing of ESG reports intensified the information asymmetry，which increased the stock price crash risk. Overall, our evidence is consistent with the masking effect of socially responsible information, and that ESG greenwashing increases the stock price crash risk.

Suggested Citation

  • Guangrui Liu & Hao Qian & Yong Shi & Yu Zhang & Fengyuan Wu, 2024. "Does ESG report greenwashing increase stock price crash risk?," China Journal of Accounting Studies, Taylor & Francis Journals, vol. 12(3), pages 615-639, July.
    • Handle: RePEc:taf:rcjaxx:v:12:y:2024:i:3:p:615-639
    DOI: 10.1080/21697213.2024.2303070
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/21697213.2024.2303070
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/21697213.2024.2303070?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.

    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:taf:rcjaxx:v:12:y:2024:i:3:p:615-639. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rcja .

    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.