Corporate ESG Washing and ESG Rating Divergence: Evidence From China
研究企业ESG洗绿行为对评级机构分歧的影响，发现洗绿程度越高，评级分歧越大，且主要源于环境维度的洗绿，最终损害股票流动性。
ABSTRACT Corporate environmental, social and governance (ESG) performance has drawn much attention. This study examines the effects of corporate strategic ESG disclosure behaviour. Specifically, we test the impact of corporate ESG washing on the divergence of ESG rating agencies. The results show that a greater degree of corporate ESG washing leads to greater ESG rating divergence. This impact is driven mostly by greenwashing within the environmental dimension of ESG. Furthermore, the positive relationship is stronger when there is more private information available, when firms are rated by a less accurate ESG rating agency and when firms have more volatile and complex operating activities and are located in regions with volatile ESG concerns than under other conditions. Finally, the results show that rating divergence negatively affects stock liquidity. In summary, this study suggests that firms' ESG washing behaviour increases the degree of information asymmetry and uncertainty among rating agencies, ultimately leading to rating divergence. Our findings have important implications for ESG development.