Research on the Driving Factors of Corporate Greenwashing and Its Impact on Financial Performance

Abstract

With the deepening of global sustainable development concepts, consumers and investors have increasingly prioritized corporate environmental performance. The phenomenon of corporate greenwashing, where companies gain short-term benefits through deceptive environmental claims, is becoming more prevalent. This not only misleads consumers and investors but may also lead to market resource misallocation and trust crises. Through qualitative research methods, this article elaborates on the driving factors of corporate greenwashing and its impact on financial performance. It discusses the overview of greenwashing's driving factors, the financial performance trends following greenwashing, and the mechanisms by which these factors affect financial performance. The results of the qualitative analysis indicate that while companies may achieve short-term financial gains through greenwashing, the long-term costs often exceed expectations, leading to brand damage, declining shareholder returns, and increased legal risks. Based on these findings, the article proposes several targeted recommendations and provide some reference for the companies to strengthen the sustainable development.