Green lies and their effect on intention to invest

Gatti, Lucia; Pizzetti, Marta; Seele, Peter

doi:10.1016/j.jbusres.2021.01.028

Cited by 86 publications

(63 citation statements)

References 81 publications

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“…Carbon information is important non-financial information for a company, while disclosure information under greenwashing behavior shows more positive performance of carbon emission reduction responsibility and better environmental performance ( Delmas and Burbano, 2011 ). Greenwashing behavior can improve a company’s social recognition and stakeholders’ expectations of the company’s future behavior and performance, promote investor optimism ( Gatti et al, 2021 ), and reduce expected risks, thus reducing the cost of equity capital for the enterprise. This improves the expected cash flow of the enterprise and promotes an improvement in enterprise value.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Carbon information disclosure quality, greenwashing behavior, and enterprise value

Cao

Zhou

et al. 2022

Front. Psychol.

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As global warming becomes increasingly prominent, countries worldwide advocate for a low-carbon economy to cope with the pressure to reduce greenhouse gas emissions. The Chinese government has proposed a “dual carbon” goal of peaking carbon emissions by 2030 and becoming carbon neutral by 2060. The disclosure of carbon information by Chinese enterprises has attracted widespread attention from society. This study selects the constituents of the Social Responsibility Index of China Shanghai Stock Exchange from 2016 to 2020 as samples to empirically analyze the relationship between the level of carbon information disclosure and corporate value, and the moderating effect of greenwashing behavior. Results indicated that the quality of carbon disclosure is positively correlated with the enterprise value. Greenwashing behavior promotes the positive impact of carbon disclosure quality on enterprise value in the short run, but this promoting effect fades in the long run. We further found that the carbon information disclosure of non-heavy-pollution enterprises has a more obvious positive impact on enterprise value than that of heavily polluting enterprises. Additionally, the positive impact of carbon information disclosure on enterprise value is more visible among enterprises in a good legal environment than those in a poor legal environment. This study enriches the relevant literature on carbon information disclosure and enterprise “greenwashing” behavior and has practical significance for promoting China’s low-carbon development in the context of ecological civilization and improving the enthusiasm for the quality of enterprise carbon information disclosure.

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Section: Literature Review and Hypothesismentioning

confidence: 99%

Carbon information disclosure quality, greenwashing behavior, and enterprise value

Cao

Zhou

et al. 2022

Front. Psychol.

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“…The author argues that market participants tend to value environmentally genuine firms. More directly, Gatti et al (2021) [17] report that greenwashing, which refers to one of the deceptive communications, has a negative impact on investment intentions.…”

Section: Backgrounds and Hypotheses Developmentsmentioning

confidence: 99%

Another Form of Greenwashing: The Effects of Chaebol Firms’ Corporate Governance Performance on the Donations

Choi¹,

Hong

2022

Sustainability

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Environmental, social, and governance (ESG) metrics are widely used to measure the firms’ social performance. In this regard, donation expenses are one of the outcomes for the firms’ effort to build, grow, and maintain the social value. However, firms may expense a trivial or minimum amount of donations, considering the corporate size, in order to disguise themselves as a “good company”. In this paper, exploiting 2010–2019 Korean Stock Exchange (KSE) market listed companies’ financials and ESG scores, we examine whether Chaebol firms with good governance “actually” spend more donation expenses. We predict and find that good governance does not actually lead to greater donation expenses among Chaebol firms, despite the positive relations between governance and donation expenses in general. Overall, our findings highlight that good Chaebol companies determined by ESG metrics may not be real charitable companies. Our findings provide counterevidence against the notion that firms with a higher ESG score are more likely to be charitable.

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“…From the legitimacy perspective, the use of images and photos in CSR communication plays a fundamental role because it can be implemented to strategically improve stakeholders’ perceptions of the organization, for instance, by mitigating perceptions of unethical behavior or by improving perceptions of positive impacts as a result of its activities (Joireman et al, 2018). CSR communications can be taken to extremes, for example, manipulation of the corporate image by resorting to greenwashing policies (Gatti et al, 2021; Lee et al, 2018). After all, artificially manipulating the image of an organization is easier than actually improving a firm's sustainability performance or value system (Dowling & Pfeffer, 1975).…”

Section: Legitimacy Theory and Visual Contentmentioning

confidence: 99%

Form and substance: Visual content in CSR reports and investors’ perceptions

Invernizzi

Bellucci

Acuti

et al. 2021

Psychology and Marketing

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Although the importance of corporate social responsibility (CSR) reporting is well recognized, the influence of the visual characteristics of CSR reports on stakeholders' evaluations of companies is largely overlooked. Drawing on theories of the processing of fluency and legitimacy, this study deploys a content analysis and a realistic laboratory experiment to assess how the use of visuals in CSR reports affects investors' perceptions. With an international sample of large companies, the content analysis explores how reports use visuals and convey messages to readers.The subsequent experiment measures the optimal number of images in reports related to social responsibility. Specifically, we investigate whether a larger number of images increases the processing fluency of investors. Based on the theoretical background and the content analysis findings, we expect that an increase in processing fluency reduces perceived hypocrisy and, in turn, increases perceived organizational legitimacy. The results show that a moderate number of images (vs. zero images or a high number of images) increases investors' processing fluency and decreases their perception of hypocrisy, leading to higher levels of organizational legitimacy. This study concludes by providing actionable implications for how companies can improve their legitimacy through nonfinancial disclosure.

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Green lies and their effect on intention to invest

Cited by 86 publications

References 81 publications

Carbon information disclosure quality, greenwashing behavior, and enterprise value

Carbon information disclosure quality, greenwashing behavior, and enterprise value

Another Form of Greenwashing: The Effects of Chaebol Firms’ Corporate Governance Performance on the Donations

Form and substance: Visual content in CSR reports and investors’ perceptions

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