Does Environmental Uncertainty Increase the Likelihood of Greenwashing? The Roles of Government Subsidies and Media Attention

Previous studies indicate environmental uncertainty aggravates corporate management risk and can lead to changes in operating strategies adopted by corporations. However, the influence of environmental uncertainty on corporate social responsibility (CSR) strategies, particularly greenwashing behavior, remains underexplored. This study seeks to examine the impact of environmental uncertainty on corporate greenwashing using a dataset from Chinese listed companies spanning 2011–2020. The empirical findings indicate a positive correlation between the degree of environmental uncertainty and greenwashing. Specifically, a one-standard-deviation increase in environmental uncertainty results in a 0.03 rise, equivalent to a 4.6% increase relative to the absolute value of average greenwashing. Furthermore, we provide evidence that higher subsidies and increased media attention can mitigate the positive impact of environmental uncertainty on greenwashing. Moreover, we observe that this effect is more pronounced in low-polluting companies and state-owned enterprises. This study contributes to the theoretical understanding of how the external environment influences operating strategies from the aspect of greenwashing and offers practical recommendations for mitigating greenwashing through the allocation of government subsidies and increased media attention.