What does this research mean for the field?

Corporate greenwashing increases executive compensation by improving short-term performance and executive reputation, with the effect being most pronounced in non-state-owned enterprises and firms with equity incentive plans. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

The study aims to investigate how corporate greenwashing affects executive compensation.

July 12, 2026PLoS ONE0 citationsOpen Access

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Benefits of hypocrisy: Do managers gain more from greenwashing

WDWeixin Dong YYYoucai Yang YCYan Chen

Key Points

The study aims to investigate how corporate greenwashing affects executive compensation.
Analyzed the relationship between greenwashing and executive compensation
Included mechanism analysis to identify performance and reputation factors
Focused on non-state-owned enterprises and firms with equity incentive plans
Corporate greenwashing raises executive compensation: effect size not quantified.
Greenwashing increases short-term performance metrics favorable to executives.
Impact of greenwashing on compensation is stronger in firms with equity incentive plans.

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.

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Benefits of hypocrisy: Do managers gain more from greenwashing

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Abstract

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