“…Currently, the level of attention towards corporate environmental impacts and commitments is very high, and environmental scandals are a topical issue (Siano et al, ). Many studies have focused on the effects of stakeholder discovery of greenwashing; some have highlighted the effects on financial performance (Du, ; Testa, Miroshnychenko, Barontini, & Frey, ; Walker & Wan, ), whereas others have examined the impact on trust (Dekhili & Achabou, ; Perrini, Castaldo, Misani, & Tencati, ) and loyalty (Guo et al, ). We expect that the type of communication and the level of greenwashing will significantly affect stakeholder reactions to an environmental scandal relating to a greenwashing discovery.H4 The environmental sensitivity of the industry will amplify the influence of different levels of greenwashing.…”