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State-owned equity participation and greenwashing behavior: evidence from Chinese private enterprises

Guangqian Ren (Zhengzhou University, Zhengzhou, China)
Man Jing (Zhengzhou University, Zhengzhou, China)
Li Liu (Henan University of Technology, Zhengzhou, China)
Minna Zheng (Hebei University of Technology, Tianjin, China)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 3 December 2024

3

Abstract

Purpose

Can state-owned equity participation inhibit private enterprises’ greenwashing behavior? If so, what are the mechanisms involved? Is there any difference in the impact of state-owned equity participation on private enterprises’ greenwashing behavior in different contexts? The answers to the above questions not only fill the existing research gaps but also provide new research ideas for greenwashing governance in developing countries.

Design/methodology/approach

Using a sample of Chinese A-share listed private enterprises from 2011 to 2022, we examine the impact of state-owned equity participation on private enterprises’ greenwashing behavior.

Findings

The results suggest that state-owned equity participation can significantly inhibit private enterprises’ greenwashing behavior. Mechanism analysis shows that state-owned equity participation suppresses private enterprises’ greenwashing behavior by alleviating financing constraints through the resource effect and reducing managerial myopia through the governance effect. Moderating effect analysis indicates that media attention can strengthen the inhibitory effect of state-owned equity participation on private enterprises’ greenwashing behavior. Heterogeneity analysis shows that the inhibitory effect of state-owned equity participation on private enterprises’ greenwashing behavior is more significant in areas with a low degree of marketization and non-heavy-polluting industries.

Originality/value

The findings enrich the governance factors of private enterprises’ greenwashing conduct from the standpoint of diverse shareholders, assist developing countries in formulating more specific policy goals and provide important insights into global environmental governance practices.

Keywords

Acknowledgements

Funding: This study was supported by the Key Project of National Social Science Foundation of China (22AGL017), the 74th Batch of General Funding Projects from the China Postdoctoral Science Foundation (2023M741072), and the 17th Batch of Special Funding Projects from the China Postdoctoral Science Foundation (2024T170248).

Citation

Ren, G., Jing, M., Liu, L. and Zheng, M. (2024), "State-owned equity participation and greenwashing behavior: evidence from Chinese private enterprises", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-07-2024-1145

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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