caa a22 4500 605483159 CHVBK 20210128100430.0 cr unu---uuuuu 210128e20150501xx s 000 0 eng 10.1007/s10551-014-2122-y doi (NATIONALLICENCE)springer-10.1007/s10551-014-2122-y Du Xingqiang Center for Accounting Studies and Accounting Department, School of Management, Xiamen University, No. 422, Siming South Road, 361005, Xiamen, Fujian, China aut How the Market Values Greenwashing? Evidence from China [Elektronische Daten] [Xingqiang Du] In China, many firms advertise that they follow environmentally friendly practices to cover their true activities, a practice called greenwashing, which can cause the public to doubt the sincerity of greenization messages. In this study, I investigate how the market values greenwashing and further examine whether corporate environmental performance can explain different and asymmetric market reactions to environmentally friendly and unfriendly firms. Using a sample from the Chinese stock market, I provide strong evidence to show that greenwashing is significantly negatively associated with cumulative abnormal returns (CAR) around the exposure of greenwashing. In addition, corporate environmental performance is significantly positively associated with CAR around the exposure of greenwashing. Furthermore, my findings suggest that corporate environmental performance has two distinct effects on CAR around the exposure of greenwashing: the competitive effect for environmentally friendly firms and the contagious effect for potential environmental wrongdoers, respectively. The results are robust to various sensitivity tests. Springer Science+Business Media Dordrecht, 2014 Greenwashing nationallicence Corporate environmental performance nationallicence Cumulative abnormal returns ( CAR ) nationallicence Media coverage nationallicence The Global Reporting Initiative (GRI) nationallicence The competitive effect nationallicence The contagious effect nationallicence Environmental wrongdoer nationallicence China nationallicence Journal of Business Ethics Springer Netherlands 128/3(2015-05-01), 547-574 0167-4544 128:3<547 2015 128 10551 https://doi.org/10.1007/s10551-014-2122-y text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10551-014-2122-y text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Du Xingqiang Center for Accounting Studies and Accounting Department, School of Management, Xiamen University, No. 422, Siming South Road, 361005, Xiamen, Fujian, China aut NATIONALLICENCE 773 0- Journal of Business Ethics Springer Netherlands 128/3(2015-05-01), 547-574 0167-4544 128:3<547 2015 128 10551