How Digital Transformation Shapes Corporate Greenwashing: The Mediating Effect of Executives’ Sustainability Cognition
DOI:
https://doi.org/10.54097/5hfz6c42Keywords:
Digital Transformation, Corporate Greenwashing, Executive Green Awareness, Mediating Effect, Corporate Governance.Abstract
The paper will examine the association between digital transformation and corporate greenwashing based on the sample of Chinese A-share-listed companies between 2014 and 2024. It is an empirical study incorporating the mediating variable as the green awareness of executives to investigate the effect of digital transformation on corporate greenwashing and the process behind it. The outcomes indicate that digital transformation can greatly prevent corporate greenwashing, with part of it being sustained by increasing the green consciousness of the executives. The analysis of heterogeneity also shows that the inhibitory action of digital transformation on the greenwashing, as well as the mediating effect of the green consciousness of executives, is stronger in the state-owned enterprises and the firms that undergo significant media attention. All in all, this paper explains how digital transformation can alleviate corporate greenwashing and provides theoretical background and practical advice that should be adopted by the companies looking to implement green development and enhance the environmental consciousness of the management.
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