2022 Fiscal Year Research-status Report
Greenwashing in Japanese Corporations: Measurement, Determinants, and Financial Reporting Impacts
| Project/Area Number |
22K13518
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| Research Institution | Nagoya University of Commerce & Business |
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Principal Investigator |
Frendy 名古屋商科大学, 商学部, 准教授 (00825218)
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| Project Period (FY) |
2022-04-01 – 2025-03-31
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| Keywords | climate change / disclosures / non-financial / CDP |
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| Outline of Annual Research Achievements |
Greenwashing is defined as the presentation of misleading positive environmental disclosures. This study examines whether the extent of greenwashing is influenced by corporate governance and assurance using a sample of 429 Japanese companies from 2018-2019 and presents five key findings. Environmental disclosure is positively associated with actual environmental performance. Firms observed with high risk of greenwashing are likely to understate their disclosures, and those firms are likely to use third-party assurance. Assurance is only effectively in mitigating the disclosures-performance asymmetry for non-greenwashing companies. Existing corporate governance is ineffective in curbing greenwashing, indicating a need to develop more effective regulations, standards, and practices.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
The research progress progresses relatively smoothly as the empirical analysis of the data obtained in the first year of the research has been completed and the first draft of the working paper has been written.
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| Strategy for Future Research Activity |
The paper will be presented in several domestic and international academic conferences to receive feedbacks and comments for further revisions. The revised working paper will be submitted for publication in an international peer-reviewed journal by the end of the year.
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| Causes of Carryover |
Reasons for the remaining balance: The first year expenditure is used to purchase data necessary to conduct the empirical research.
Usage plan: The expenditure planned to be incurred in the next fiscal year will be used to purchase research software, research materials, proofreading fees for publication, and travel expenses for domestic and international conferences.
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