Benefits of hypocrisy: Do managers gain more from greenwashing.

Dong, Weixin; Yang, Youcai; Chen, Yan · PLoS One · 2026

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Abstract

This study finds that corporate greenwashing raises executive compensation. Mechanism analysis indicates that greenwashing enhances executive compensation by improving short-term performance and enhancing executive reputation. In addition, this effect is more pronounced in non-state-owned enterprises, companies with equity incentive plans, and firms that grant restricted stock.