Research On Capital Market Reaction To Exposure Of Corporate Greenwashing

With the prevalence of sustainable development concepts around the world,the values of green and environmental protection have become more popular in our society.Under this environmental change and the sensitive sense of economic interests,some companies began to pack themselves with“green vests”,thengreenwashing”was born.As a kind of substantive pseudo-social responsibility behavior,once the greenwashing occurs,it will harm the interests of enterprises,stakeholders and even the whole society.At present,most of the relevant research is focused on the definition of greenwashing behavior,the classification of manifestations,the causes of motivation and the governance.However,few scholars have used actual cases to examine the capital market reaction on exposure of corporate greenwashing.Based on the above considerations,this paper mostly researches on three aspects:Firstly,what are the characteristics of the phenomenon of corporate greenwashing behaviors?What is the motivation for its formation?Secondly,can the capital market punish corporates with the exposure of greenwashing behavior?Is the disciplinary effect significant?Finally,will the exposure of companies with different characteristics of greenwashing behavior cause different capital market reactions?Based on the China Greenwashing List,this paper conducts a case study and analysis on the greenwashing behavior of the listed companies from 2013 to 2016,we will summarize the overall characteristics of the greenwashing behavior of Chinese enterprises,study their motivations,then through the event study,investigate the capital market reaction of corporate greenwashing behavior exposure.As a result,China's capital market can have a negative impact on the exposure of corporate greenwashing behavior,but this impact is not very significant.In order to investigate the cause,we investigates the reaction of the capital market after the exposure of greenwashing behavior according to the characteristics of the greenwashing behavior in the conclusions.The results show that under the characteristic factors of forms,enterprise nature,geographical distribution and industry attribution,there are significant differences in the disciplinary response of capital market to corporate greenwashing:the more serious the company's greenwashing,the more negative the market reaction was,they were positively related;the state-owned enterprises were more severely disciplined than the private enterprises;the enter:prises in the central region were punished more severely from the capital market than enterprises in the western and eastern;the electronics,energy and pharmaceutical industries were more negative compared with food and chemical industries.Lastly,based on these conclusions,we will summarize the effective governance suggestions for the greenwashing of Chinese enterprises.Throughout the full text,there are some contributions:Firstly,through the relevant research on the greenwashing behavior of enterprises,We can deepen the related theories of stakeholders and information asymmetry from the perspective of greenwashing,and enrich the relevant theories of the greenwashing.Secondly,it is helpful to enrich the current empirical research results of greenwashing and to expand the research on the influencing factors of the exposxire effect of greenwashing.Finally,according to the research conclusions,it helps to identify some hidden greenwashing behaviors,as well as several types of enterprises that have been escaped or lightly punished by the capital market,helping the capital market to better play the economic punishment function,avoiding the whole society falling into the trap of greenwashing.