Page 236 - AJWEP-22-4

Lv, et al.

Table 4. Benchmark regression
Variables Gws
1 2 3 4
Cepi 0.083*** - 0.084*** -
(2.64) (2.68)
L. Cepi - −0.069* - −0.090**
(−1.65) (−2.19)
Mshare - - 0.009*** 0.009***
(4.43) (3.74)
Size - - 0.073 0.098*
(1.54) (1.90)
Cr - - 0.057*** 0.059***
(3.40) (3.16)
Audit fee - - 0.223*** 0.225***
(3.29) (3.06)
Salary sum - - 0.108** 0.114**
(2.22) (2.16)
Ato - - 0.155* 0.247***
(1.82) (2.70)
Bm - - −0.251 −0.200
(−1.36) (−0.99)
Top - - 0.001 0.001
(0.67) (0.39)
Board - - −0.123 −0.159
(−0.83) (−0.97)
Rdperson - - −0.049 −0.052
(−1.60) (−1.57)
Constant −0.464*** −0.468*** −6.777*** −7.465***
(−14.70) (−13.58) (−6.90) (−7.02)
Year effect Controlled Controlled Controlled Controlled
Industry effect Controlled Controlled Controlled Controlled
Observations 5,286 4,011 5,286 4,011
R-squared 0.036 0.051 0.078 0.099
Notes: Column 1 of Gws reports the results of Cepi without control variables; Column 2 of Gws reports the results of one-period lagged
Cepi without control variables; Column 3 of Gws reports the results of Cepi with control variables; Column 4 of Gws reports the results
of one-period lagged Cepi with control variables. The t-values of the two-sided t-test corresponding to the robust standard error of
firm-level clustering is in parentheses. *p<0.1, **p<0.05, ***p<0.01.
Abbreviations: Gws: Greenwashing; Cr: Current ratio; Ato: Asset turnover; Bm: Book-to-market ratio.

CEPI. However, no significant moderating effect was by “all words and no action,” require minimal financial
observed in the year of CEPI’s introduction. A plausible resources and help reduce compliance costs, making
explanation is that, under the high pressure of inspection, Gws an attractive short-term strategy. Nonetheless, in
firms may refrain from substantive corrective actions the long run, reliance on symbolic practices can lead
and instead adopt symbolic green disclosures to appease to reputational damage, regulatory punishment, and,
inspectors. Such superficial disclosures, characterized ultimately, performance deterioration.

Volume 22 Issue 4 (2025) 228 doi: 10.36922/AJWEP025280219