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CEPI & ESG greenwashing: Exec. attention view

typically correlated with the error term, resulting in a
Rdperson - - - - - - - - - - - 1 bias in the traditional ordinary least squares estimation.
GMM resolves this issue through the use of instrumental
variables and moment conditions. Given the long panel
characteristics of the sample used in this study, the
Board - - - - - - - - - - 1 0.041*** dynamic panel GMM estimation method can effectively
test the persistence effect of the policy, as supported by
prior studies. For this reason, this study established
46
a dynamic panel model that includes a one-period lag
Top - - - - - - - - - 1 0 0.011 of the dependent variable and introduces instrumental
variables to mitigate endogeneity. The GMM estimation
results were largely consistent with those from the
0.074*** 0.069*** benchmark regression, as illustrated in Table 5. The
Bm - - - - - - - - −0.062*** p-value of the second-order autocorrelation (AR 2)
1
was higher than 0.1, suggesting that the instrumental

Hansen test did not reject the null hypothesis of
Ato - - - - - - - 1 −0.063*** 0.100*** −0.027** 0.164*** variables were chosen effectively. Furthermore, the
instrumental validity, confirming the robustness of the
model specification.

Salary sum - - - - - - 1 0.096*** −0.027** −0.104*** 0.127*** 0.345*** 5.2.4. Sample size expansion
To further ensure the robustness of the results, this study
expanded the sample size for testing. Given that some
enterprises reported missing data on R&D personnel, the
Audit fee - - - - - 1 0.385*** 0.112*** 0.111*** 0.060*** 0.126*** 0.379*** corresponding control variable was excluded to retain
the original dataset. Subsequently, observations with
missing values for other variables are excluded. This
approach reduces data exclusion, thereby expanding
the sample size for robustness testing. According to the
Cr - - - - 1 −0.279*** −0.045*** −0.144*** 0.027** −0.013 −0.102*** −0.129*** Abbreviations: cepi: Central environmental protection inspection; Gws: Greenwashing; Cr: Current ratio; Ato: Asset turnover; Bm: Book-to-market ratio. test results (Table 6), the impact of CEPI on corporate
ESG Gws remained significant, robust, and consistent
with the previous findings. All independent variable
−0.346*** 0.742*** 0.385*** 0.043*** 0.134*** 0.166*** 0.198*** 0.460***
Size 1 coefficients were statistically significant at least at the
10% level.
-
-
-
5.3. Mechanism tests
Mshare - - 1 −0.271*** 0.194*** −0.203*** 0.001 −0.050*** −0.137*** −0.020 −0.183*** 0.016 Fs is a flexible resource available to executives,
enabling them to respond to external pressures or
opportunities. This resource affects the intensity
of corporate green governance and thus serves a
−0.036***
moderating role. When executives pay attention to
Table 3. Correlation analysis Gws Variables 1 0.017 0.071*** 0.114*** 0.029** 0.146*** Audit fee 0.095*** 0.048*** −0.001 0.046*** 0.001 0.045*** Rdperson Notes: *p<0.1, **p<0.05, ***p<0.01. positioned to allocate resources toward effective green
−0.010
−0.008
−0.003
−0.007
0.017
0.007
0.019
0.007
0.006
Cepi
CEPI policy, corporates with greater Fs are better
1
-
governance, thereby reducing the risk of Gws. From
the perspective of executive attention, enterprises with
different degrees of Fs are likely to exhibit different
behavioral responses.
This study conducted a moderating effect test for
Fs, with the results shown in Table 7. The findings
Mshare
Cepi
Gws
Size
ESG Gws in the year following the implementation of
doi: 10.36922/AJWEP025280219
Volume 22 Issue 4 (2025) Cr Salary sum Ato Bm Top Board 227 indicate that Fs significantly contributes to curbing