2023 Fiscal Year Research-status Report
Greenwashing in Japanese Corporations: Measurement, Determinants, and Financial Reporting Impacts
| Project/Area Number |
22K13518
|
|---|
| Research Institution | Nagoya University of Commerce & Business |
|---|
Principal Investigator |
Frendy 名古屋商科大学, 商学部, 准教授 (00825218)
|
|---|
| Project Period (FY) |
2022-04-01 – 2025-03-31
|
| Keywords | climate change / disclosures / nonfinancial / CDP |
|---|
| Outline of Annual Research Achievements |
The study develops a measure of environmental greenwashing, defined as the overstatement of companies' environmental disclosures compared to their actual performance. It examines the relationship between greenwashing probability and environmental performance, and investigates the impact of Japanese firm-level corporate governance and third-party assurance on greenwashing. The analysis of 420 firm-years from 2018-2019 reveals that the likelihood of greenwashing is negatively associated with environmental performance, supporting the reliability of the greenwashing measure. The study finds that Japanese corporate governance characteristics are ineffective at mitigating greenwashing, and assurance can be exploited by greenwashing companies to increase their overstatement.
|
| 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 greenwashing manuscript was submitted to the Meditari Accountancy Research journal and is currently undergoing the first round of review. A second greenwashing manuscript is currently being drafted.
|
| Strategy for Future Research Activity |
The first round of peer review for the greenwashing paper will be completed with a submission in early June. A second working paper, which explores the relationship between greenwashing and accounting conservatism, will be finished by the middle of July. The second paper will then be submitted for presentation at international conferences.
|
| Causes of Carryover |
Several planned international academic conferences did not take place due to the rejection of the paper and cancellations by the organizers. The purchase of research materials was also postponed due to the time needed to prepare and submit the research paper for publication. The expenditure planned for the next fiscal year will be used to purchase research software, research materials, cover proofreading fees, journal submission fees, conference registration costs, and travel expenses for presenting at international conferences.
|
