Kathan, Manuel C. and Utz, Sebastian and Dorfleitner, Gregor and Eckberg, Jens and Chmel, Lea (2025) What you see is not what you get: ESG scores and greenwashing risk. FINANCE RESEARCH LETTERS, 74: 106710. ISSN 1544-6123, 1544-6131
Full text not available from this repository. (Request a copy)Abstract
This paper shows that ESG scores capture a company's greenwashing behavior. Greenwashing accusations are most prevalent among large companies with high ESG scores. We empirically employ a novel theoretical model that distinguishes between the communication of a company's environmental efforts (apparent environmental performance) and its actual environmental impact (real environmental performance). The correlation of the apparent (real) environmental performance with ESG scores is significantly positive (negative). Therefore, ESG scores are unsuitable for measuring real environmental impact. Thus, investors focusing on high ESG-rated companies may unknowingly increase their greenwashing risk exposure, and academics may use misleading information to assess greenwashing risk.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | CORPORATE SOCIAL-RESPONSIBILITY; ESG scores; Greenwashing; Greenwashing indicator; Information asymmetry; Analysts coverage |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Finanzierung (Prof. Dr. Gregor Dorfleitner) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 07 May 2026 06:52 |
| Last Modified: | 07 May 2026 06:52 |
| URI: | https://pred.uni-regensburg.de/id/eprint/67323 |
Actions (login required)
 |
View Item |
