Dr Ella Xu

This study examines the different impact of ownership on greenwashing. Employing an international sample of family–controlled firms and PSM–matched non–family counterparts, it is found that family businesses are less likely to engage in greenwashing practices. Further analysis of the heterogeneity of this phenomenon on external, institutional, regulatory, jurisdictional and cultural contexts. The findings reflect that family ownership matters, and family firms are more likely to walk the talk compared to their counterparts.

This study explores how firms navigate the growing awareness of carbon emissions when adopting green strategies to maintain legitimacy and reputation. Driven by financial incentives, some firms may project strong environmental performance without implementing actual emission reduction efforts, which leads to carbon-washing. This study focuses on the role of ownership structure in carbon-washing behaviours by comparing family businesses to non-family businesses. Integrating legitimacy and signaling theories with the socioemotional wealth concept, the findings confirm the presence of carbon-washing, revealing that family businesses are less willing to engage in carbon-washing practices than non-family businesses. This study also investigates the drivers of carbon-washing through multiple mechanisms, including ESG reputation, Carbon Emission Trading Scheme implementation, and legal contexts, and further considers the influence of national culture. Our findings challenge the conventional assumption that a high environmental performance rating aligns with genuine carbon emissions reduction, highlighting the nuances of corporate carbon-washing behaviour across the firm-, industry-, and country- levels.