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Concealment Breeds Suspicion: CEO Dishonesty and Corporate Green Innovation

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  • Ji Dong
  • Yanning Liu
  • Jinfang Tian
  • Yunjing Wang

Abstract

Despite growing attention to the economic consequences of CEO dishonesty, its link to corporate green innovation remains underexplored. Using a matched dataset between CEO personal information and the discredited debtor list released by the Supreme People's Court of China, this study investigates the impact of CEO dishonesty on corporate green innovation using a sample of A‐share listed firms on the Shanghai and Shenzhen stock exchanges from 2010 to 2021. The results show that CEO dishonesty increases green innovation, but such efforts are largely symbolic rather than substantive. The underlying mechanism lies in heightened public scrutiny, with political connections and environmental awareness moderating the effect. The impact also differs by corporate governance quality, firm‐level practices, and regional conditions. The findings suggest that reputational concerns may drive prosocial behavior among dishonest CEOs, enriching the literature on executive integrity and corporate environmental strategy.

Suggested Citation

  • Ji Dong & Yanning Liu & Jinfang Tian & Yunjing Wang, 2025. "Concealment Breeds Suspicion: CEO Dishonesty and Corporate Green Innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(8), pages 4253-4276, December.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:8:p:4253-4276
    DOI: 10.1002/mde.70011
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