Peer effect of corporate greenhushing: evidence from China

This study investigates the industry peer effects of greenhushing and the underlying mechanisms. The findings reveal a significant peer effect in corporate greenhushing among Chinese listed firms, that is, a focal firm’s tendency to remain silent on green issues is strongly driven by the level of greenhushing exhibited by its industry peers. This conclusion remains robust across a series of endogeneity checks. Mechanism analysis further shows that market competition and environmental regulation both amplify the peer effect. Heterogeneity analysis indicates that the peer effect is more pronounced among firms with separated CEO and chair roles, SOEs, firms subject to lower media scrutiny, and firms with higher competitive positions. These findings provide insights for improving the rationality of corporate carbon disclosure and developing effective mechanisms to curb the diffusion of greenhushing within industries.