How do firms react to capital market liberalization? Evidence from ESG reporting greenwashing
Guangrui Liu,
Hao Qian,
Yong Shi
et al.
Abstract:Based on catering theory, this study employs a difference‐in‐differences model to investigate the impact of capital market liberalization on environmental, social, and governance (ESG) reporting greenwashing using mainland Hong Kong Connection Programs as a quasinatural experiment. Our findings indicate that corporate management increasingly engages in ESG reporting greenwashing in capital market liberalization to cater to foreign investors. This conclusion remains valid after controlling for endogeneity. Mech… Show more
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