Supply chain network centrality and corporate greenwashing behavior

Abstract

• Supply chain network centrality can suppress corporate greenwashing behavior. • The effect is driven by alleviating finance constraints and inhibiting managerial myopia. • The effect is more significant in corporations within heavily polluting industries. • The effect is more significant in corporations within weaker industry competition. • The higher the corporate's transaction costs, the more significant the impact becomes. This paper examines the impact of supply chain network centrality on corporate greenwashing behavior. Using data from Chinese listed companies, we find that supply chain network centrality suppresses corporate greenwashing behavior, and the impact mechanism is that supply chain network centrality alleviates corporate financing constraints and inhibits managerial myopia. We also find that relationship between supply chain network centrality and corporate greenwashing behavior is more significant among corporations in heavily polluting industries, weaker industry competition, and higher transaction costs. This paper extends the governance factors of corporate greenwashing behavior to the level of supply chain network relationships.