Blinded by power: managerial power and greenwashing

Revealing the determinants of greenwashing practices of corporations is of utmost importance for contributing to fostering sustainability. This study adopts an internal governance perspective to investigate the influences of managerial power on greenwashing practices by employing a dataset including 15,318 observations of Chinese listed firms from 2009 to 2023. The findings of this study corroborate that managerial power can enhance intention of corporations to partake in greenwashing practices. In addition, managerial myopia can significantly and positively mediate the influences of managerial power on greenwashing. Political connections of the senior management can positively moderate the influences of managerial power on greenwashing. The green and overseas experiences of senior management can weaken the nexus between managerial power and greenwashing. The findings can provide some insights into understanding the underlying reasons why some corporations tend to partake in greenwashing.