Is Liability of Foreignness Always Bad for Firms? A Study of the Influence of Top Management Team Foreignness on Corporate Greenwashing

IF 12.5 1区 管理学 Q1 BUSINESS
Jialei Song, Shouming Chen
{"title":"Is Liability of Foreignness Always Bad for Firms? A Study of the Influence of Top Management Team Foreignness on Corporate Greenwashing","authors":"Jialei Song,&nbsp;Shouming Chen","doi":"10.1002/bse.4166","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>This study investigates the impact of top management team (TMT) foreignness on corporate greenwashing. Drawing on social identity theory, we argue that foreign TMT members, suffering more from individual liability of foreignness (LOF), adopt a more cautious approach to uncertain environmental disclosures and are more concerned with preventing corporate misbehaviors. These lead foreign TMT members to communicate companies' environmental initiatives in a more honest manner, thereby effectively reducing corporate greenwashing. We further propose that the negative relation between TMT foreignness and greenwashing will be strengthened when a firm faces higher earnings pressure and operates in a less marketized environment, as these conditions exacerbate individual LOF on foreign TMT members. Empirical analysis of a sample of Chinese listed companies from 2010 to 2022 confirms our arguments, suggesting that hiring foreign executives can be an effective strategy for mitigating greenwashing, particularly in contexts where individual LOF is more pronounced.</p>\n </div>","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"34 3","pages":"3360-3384"},"PeriodicalIF":12.5000,"publicationDate":"2025-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Strategy and The Environment","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/bse.4166","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0

Abstract

This study investigates the impact of top management team (TMT) foreignness on corporate greenwashing. Drawing on social identity theory, we argue that foreign TMT members, suffering more from individual liability of foreignness (LOF), adopt a more cautious approach to uncertain environmental disclosures and are more concerned with preventing corporate misbehaviors. These lead foreign TMT members to communicate companies' environmental initiatives in a more honest manner, thereby effectively reducing corporate greenwashing. We further propose that the negative relation between TMT foreignness and greenwashing will be strengthened when a firm faces higher earnings pressure and operates in a less marketized environment, as these conditions exacerbate individual LOF on foreign TMT members. Empirical analysis of a sample of Chinese listed companies from 2010 to 2022 confirms our arguments, suggesting that hiring foreign executives can be an effective strategy for mitigating greenwashing, particularly in contexts where individual LOF is more pronounced.

求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
22.50
自引率
19.40%
发文量
336
期刊介绍: Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信