The Impact Of Greenwashing On Enterprise Value

After the reform and opening up,China’s economy and society have developed rapidly and achieved achievements that have attracted the attention of the world.However,the original extensive economic development model has gradually revealed its drawbacks and problems,environmental degradation and ecological imbalance have seriously restricted the further development of China’s economy.In this context,green,low-carbon and sustainable development has become a hot spot for the government and society,which puts forward higher requirements for the environmental performance of enterprises.However,there are still some enterprises that have a fluke mentality and create a false green environmental protection image through "greenwashing",and the phenomenon of "greenwashing" is becoming increasingly serious,which has a great negative impact on enterprises,the ecological environment,and economic and social development.So,what is the impact of corporate greenwashing on corporate value?What are the paths of influence?This paper discusses the above issues through theoretical analysis and case discussion,hoping to draw useful conclusions and provide suggestions for the governance of greenwashing.This paper first summarizes the literature related to greenwashing,and puts forward the influence path of corporate greenwashing on enterprise value on the basis of relevant theories.From the perspective of stakeholders such as governments,creditors,shareholders,employees,consumers,and suppliers,corporate greenwashing behavior affects the behavior of stakeholders,which in turn has an impact on the value of enterprises.Greenwashing successfully creates a false green reputation,prompts stakeholders to take positive actions,and then promotes corporate value.When greenwashing is exposed,stakeholders will behave negatively,which will negatively impact corporate value.On the basis of theoretical analysis,Xingye Leather Technology Co.,Ltd.,a leading company in the tanning industry,was selected as a case enterprise,and the impact of corporate greenwashing behavior on enterprise value was analyzed from the aspects of market response and financial performance,and the impact mechanism was analyzed from the perspective of stakeholders,and the conclusion that the degree of impact of corporate greenwashing exposure on enterprise value was closely related to the nature and severity of the event causing exposure.This paper discusses the impact and specific impact path of greenwashing behavior on corporate value,enriches the research on corporate greenwashing behavior,and provides some reference for future scholars to study the economic consequences and impact paths of greenwashing.From a practical point of view,it is hoped that enterprises can be warned to pay attention to environmental issues,abide by environmental laws and regulations,assume corporate social responsibility,and avoid the road of "greenwashing".At the same time,it arouses the public’s attention to corporate greenwashing behavior,provides some reference and enlightenment for the establishment of a multi-entity all-round supervision system in China,and makes corporate greenwashing behavior "nowhere to hide" through the improvement of the regulatory system.