Hero or villain? The role of the board of directors in combating greenwashing
摘要
This paper investigates the effect of the board structure on the greenwashing practices of financial companies. The final sample comprised 1,127 financial firms (6,493 observations) from G20 countries over the period from 2016 to 2022. Generalized Least Squares (GLS) and logistic regression models were employed to analyze the data, both across the full period and specifically during the pandemic, to observe variations in greenwashing practices under different economic and social contexts. The results revealed that larger boards were more effective in reducing greenwashing during the pandemic, though this effect was not significant over the full period. Conversely, more independent boards were associated with increased greenwashing practices. Additionally, CEO duality demonstrated a negative relationship with greenwashing. This study contributes to a deeper understanding of the internal mechanisms influencing greenwashing, emphasizing the role of board structure. The findings offer valuable insights for managers, investors, and policymakers, suggesting that larger boards may be more effective in mitigating greenwashing practices during times of crisis.