The of Dual-Credit Policy on the Greenwashing Practice: Evidence from New Energy Vehicle Enterprises

The dual-credit policy is a critical turning point for China's new energy vehicle (NEV) industry shifting towards market-driven from subsidy-driven. It aims to achieve business performance and environmental performance of the NEV enterprises and conforms to the strategic needs of dual carbon. This study applies PSM-DID model to investigate whether dual-credit policy impacts greenwashing of Chinese NEV listed companies during 2011-2020. Research findings indicate that: (1) The dual-credit policy significantly increases greenwashing degree of NEV enterprises. (2) The two capital information intermediaries negatively moderate the nexus of dual-credit policy and greenwashing. Analyst attention and media attention can exert inhibiting effects on the greenwashing of NEV enterprises. (3) Heterogeneity analysis shows that dual-credit policy has obviously motivated greenwashing in state-owned, small-scale and lower proportion of independent directors NEV firms. Additionally, NEV enterprises in areas with poor fiscal revenue and low degree of marketization incline to greenwash more. Some targeted policy suggestions for further promoting the greenwashing governance of NEV enterprises are put forward.