ESG Greenwashing and Ownership Structure under Information Asymmetry

Purpose: This is the first paper to investigate how ownership structure influences ESG greenwashing, with a focus on the moderating role of information asymmetry. The study is set in Vietnam’s stock market, where state ownership remains significant and disclosure standards are still developing. Design/Methodology/Approach: We construct a unique hand-collected dataset of annual reports from listed firms between 2020 and 2024. Greenwashing is measured using both disclosure–performance gaps and narrative-based textual analysis. Ordinary least squares and two-stage least squares regressions are employed, with robustness checks using alternative proxies for information asymmetry. Findings: Results show that in transparent environments, ownership variables do not significantly affect greenwashing. Under high information asymmetry, managerial ownership increases greenwashing, while state and institutional ownership reduce it. Additional tests confirm that the relationship is one-directional, with ownership shaping greenwashing but not vice versa. Research Limitations/Implications: The study is limited by its focus on Vietnamese listed firms, which may restrict generalizability. Future research could expand to other emerging markets and use longitudinal data on ESG assurance. Practical Implications: Investors and regulators should account for ownership identities when assessing ESG reports, especially in opaque environments where greenwashing risks are greatest. Originality/Value: This paper provides novel evidence from an emerging market, highlighting how ownership structure and information asymmetry jointly shape the credibility of ESG disclosure and greenwashing behaviour.