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Greenwashing and product market competition

Finance research letters, 2021-10 [Peer Reviewed Journal]

Distributed under a Creative Commons Attribution 4.0 International License ;ISSN: 1544-6123 ;EISSN: 1544-6131 ;DOI: 10.1016/j.frl.2021.101927

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  • Title:
    Greenwashing and product market competition
  • Author: Arouri, Mohamed ; El Ghoul, Sadok ; Gomes, Mathieu
  • Subjects: Computational Finance ; Economics and Finance ; General Finance ; Humanities and Social Sciences ; Portfolio Management ; Quantitative Finance ; Statistical Finance
  • Is Part Of: Finance research letters, 2021-10
  • Description: This study examines the relationship between corporate greenwashing and product market competition (PMC). Using an unbalanced panel of 324 US firms over the 2005-2015 period, we find that the negative impact of PMC on greenwashing is conditional on the level of environmental costs. Our results suggest that PMC is an effective disciplinary mechanism for achieving economic efficiency --in the case of firms featuring a high level of environmental costs-- through an increase in the disclosure of reliable and material information.
  • Publisher: Elsevier
  • Language: English
  • Identifier: ISSN: 1544-6123
    EISSN: 1544-6131
    DOI: 10.1016/j.frl.2021.101927
  • Source: Hyper Article en Ligne (HAL) (Open Access)

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