Greenwashing, bank financial performance and the moderating role of gender diversity

Drawing on legitimacy and upper echelons theories, the study explores the impact of greenwashing on bank performance and whether women on boards play a moderating role in this relationship. Using a sample of European listed banks over the period 2013–2020, our findings show greenwashing has a negati...

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Bibliographic Details
Published in:Research in international business and finance 2024-04, Vol.69, p.102235, Article 102235
Main Authors: Birindelli, Giuliana, Chiappini, Helen, Jalal, Raja Nabeel-Ud-Din
Format: Article
Language:English
Subjects:
Banks
Corporate governance
ESG
Financial performance
Gender diversity
Greenwashing
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Summary:Drawing on legitimacy and upper echelons theories, the study explores the impact of greenwashing on bank performance and whether women on boards play a moderating role in this relationship. Using a sample of European listed banks over the period 2013–2020, our findings show greenwashing has a negative effect on bank performance, yet female directors play a moderating role in this relationship. Overall, our research contributes to the emerging literature on the impact of greenwashing on corporate financial performance, shedding new light on the role played by board gender diversity. Our study, therefore, has significant implications for policymakers, regulators and banks. [Display omitted] •The study explores the impact of greenwashing on bank performance and investigates whether women on boards play a moderating role in this relationship.•Results suggest that greenwashing has a negative impact on the bank’s performance.•Female directors moderate this relationship.
ISSN:0275-5319
1878-3384
DOI:10.1016/j.ribaf.2024.102235