Title: How does legitimacy pressure drive corporate greenwashing? Evidence from China

Authors: Qiong Yao; Huihao Lin; Huiying Hu; Mingli Li

Addresses: School of Management, Jinan University, Guangzhou, China ' School of Management, Jinan University, Guangzhou, China ' School of Management, Jinan University, Guangzhou, China ' School of Management, Jinan University, Guangzhou, China

Abstract: This paper employs institutional theory and information asymmetry theory to explore the impact of legitimacy pressures on corporate greenwashing, whilst concurrently assessing the moderating roles of environmental visibility and geographical location. Specifically, it poses two main questions: 1) what is the relationship between legitimacy pressures and corporate greenwashing?; 2) how do environmental visibility and geographical location, through the lenses of institutional theory and information asymmetry theory, affect the interplay between legitimacy pressures and corporate greenwashing? This investigation analysed data from 130 publicly listed companies and formulated an empirical model to evaluate the hypotheses. The results indicate that legitimacy pressures have an inverted U-shaped effect on greenwashing. Factors such as organisational visibility, environmental regulations, and geographical distance temper this inverted U-shaped relationship between legitimacy pressures and greenwashing.

Keywords: greenwashing; legitimacy pressure; environmental visibility; geographical location; China.

DOI: 10.1504/IJESD.2025.149950

International Journal of Environment and Sustainable Development, 2025 Vol.24 No.3, pp.235 - 256

Received: 08 Aug 2023
Accepted: 24 Jun 2024
Published online: 19 Nov 2025 *

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