Can digital transformation curb corporate greenwashing

Enterprise greenwash behavior can have serious negative impacts, so governance of greenwash behavior is crucial. Digital transformation can effectively inhibit corporate greenwash behavior. Based on the data of China's A-share listed companies from 2012 to 2022, this paper explores the effect of digital transformation on corporate greenwash behavior. The study shows that corporate digital transformation can effectively inhibit and improve corporate greenwash behavior, and the conclusion still holds after a series of robustness tests. Further analysis shows that digital transformation improves corporate greenwash behavior by facilitating corporate green transformation. Heterogeneity analysis shows that the inhibitory effect of digital transformation on corporate greenwash behavior is more significant in state-owned enterprises and non-heavily polluted enterprises compared to non-state-owned enterprises and heavily polluted enterprises.