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Evaluating the Impact of Environmental Performance on Green Innovation in Chinese Firms: Moderating Role of Greenwashing

In: Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025)

Author

Listed:
  • Yajin Shi

    (Inner Mongolia University of Finance and Economics, School of Public Finance and Taxation)

Abstract

In light of escalating global environmental challenges, green innovation has emerged as a crucial strategy for enterprises to enhance their environmental performance and bolster market competitiveness. Nevertheless, certain companies engage in “greenwashing” by overstating their environmental responsibilities and achievements. Utilizing data from A-share listed companies in Shanghai, Shenzhen, and Beijing spanning from 2011 to 2023, this study investigates the relationship between corporate environmental performance scores and green innovation levels, with an emphasis on the moderating effect of greenwashing practices. The empirical findings reveal that environmental performance scores exert a significant positive influence on green innovation levels, particularly within state-owned enterprises, small-scale enterprises, and those enterprises not categorized within heavy polluting industries. Furthermore, it is observed that greenwashing behavior diminishes the positive impact of environmental performance scores on green innovation. This research offers novel insights and empirical evidence for policymakers and business leaders to facilitate the green transformation and sustainable development of Chinese enterprises.

Suggested Citation

  • Yajin Shi, 2025. "Evaluating the Impact of Environmental Performance on Green Innovation in Chinese Firms: Moderating Role of Greenwashing," Advances in Economics, Business and Management Research, in: Abdelhak Senadjki & Chee Yoong Liew & Yahua Xu & Fong Peng Chew (ed.), Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025), pages 339-353, Springer.
  • Handle: RePEc:spr:advbcp:978-94-6463-888-2_34
    DOI: 10.2991/978-94-6463-888-2_34
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