Does CEO AI literacy curb ESG greenwashing? Evidence from China

This study examines whether CEO AI literacy curbs or amplifies ESG greenwashing. Using 10,820 firm-year observations of Chinese A-share listed firms from 2019 to 2022, we construct CEO AI literacy from resume-based evidence of AI-related education, work experience, and executive background. We find that CEO AI literacy significantly reduces ESG greenwashing, suggesting that technological cognition promotes substantive ESG practices rather than symbolic disclosure. This effect is stronger in high-tech industries, where digital infrastructure enables CEOs’ AI capabilities to translate more effectively into ESG monitoring and transparency. The findings remain robust to PSM and entropy balancing. This study contributes by identifying CEO-level AI literacy as a micro-foundation of ESG authenticity.