Fueling substance or symbolism? Independent director interlocks, market pressures and corporate symbolic ESG behavior

Purpose Building on social network and resource-dependence theory, the study aims to investigate the impact of independent director interlocks (IDIs) on corporate greenwashing (GW). Furthermore, the authors scrutinize how the environmental regulations (ER) and market competition (MC) affect the path between IDIs and GW. Design/methodology/approach The research sample consists of China’s A-share-listed companies for the period 2010–2022. The study uses a robust analytical framework that integrates the propensity score dummy variable approach, different proxies for regressors and instrumental variable techniques. Findings Using rigorous methods, the empirical analysis indicates that IDIs contribute to deterring GW, consistent with the theoretical framework of environmental strategic congruence. The moderation analysis shows that increased levels of ER and MC strengthen strategic congruence and intensify the curbing impact of IDIs on GW. Moreover, the results suggest that the mitigating effect of IDIs on GW is particularly significant for firms that are state-owned or operate in high-pollution industries. Practical implications The findings provide practical guidance for managers and policymakers by showing how IDIs can help curb hypocritical environmental, social and governance behavior and improve the authenticity of firms’ environmental initiatives, even under worse regulatory and competitive pressures. Originality/value The research investigates how independent director corporate interlocks and independent director’s financial interlocks directly affect corporate GW behavior, while also exploring the moderating influence of ER and MC, an area previously overlooked.