Command and code: how CEO military experience and AI curb corporate greenwashing

Purpose In response to increasing stakeholder and societal demands for environmental responsibility, some firms may engage in greenwashing to balance reputational pressures with cost considerations. Drawing on upper echelons theory, this study examines the impact of CEO military experience and AI implementation on firm greenwashing. Design/methodology/approach This study utilizes a panel dataset comprising 1,286 Chinese A-share listed firms traded on the Shanghai and Shenzhen stock exchanges over the period from 2015 to 2022. To identify causal effects, a difference-in-differences (DID) estimation strategy is employed. Findings The findings reveal that firms led by CEOs with military backgrounds are significantly less likely to engage in greenwashing. Moreover, this negative relationship is amplified by the level of AI implementation within the firm. Both the breadth and depth of AI implementation enhance the mitigating effect of CEO’s military experience on greenwashing. Additional heterogeneity analyses indicate that the effect varies by firm ownership structure and industry pollution intensity. Originality/value These findings contribute to the literature on corporate sustainability by highlighting the role of executive characteristics and technological innovation in shaping environmental disclosure practices.