Impact of Corporate Innovation on Greenwashing Behavior

As global attention to environmental protection intensifies, an increasing number of companies are engaging in greenwashing practices, which misrepresent their sustainability efforts. This paper presents an empirical analysis examining the impact of corporate innovation on greenwashing behavior. The findings reveal that innovation serves a crucial role in suppressing such misleading practices, as demonstrated by a fixed effects model. Furthermore, moderation effect analysis indicates that the relationship between innovation and greenwashing becomes more pronounced under imitative competitive pressure, suggesting that firms may enhance their commitment to sustainability when influenced by competitors. However, heterogeneity analysis indicates that this suppressive effect is less pronounced among state-owned enterprises and high-pollution industries, thereby underscoring the necessity for tailored strategies in these sectors. In sum, the findings offer valuable insights for corporate managers, market regulators, and investors, enabling more informed decision-making and promoting a more transparent and sustainable business landscape.