Correcting or Concealing? The Impact of Digital Transformation on the Greenwashing Behavior of Heavily Polluting Enterprises

Identifying and governing enterprises’ greenwashing behavior is important for achieving green and low-carbon development. This behavior can be governed via digital transformation. Based on data from listed companies from 2013 to 2021, this article examines the impact of the digital transformation of heavily polluting enterprises on their greenwashing behavior, with an empirical analysis revealing that it can significantly inhibit this behavior. A mechanism analysis indicates that the digital transformation of heavily polluting enterprises reduces greenwashing behavior by enhancing the level of enterprise green technological innovation and improving investor attention. A heterogeneity analysis shows that the impact of enterprise digital transformation on greenwashing behavior is more significant among the private and highly competitive heavily polluting enterprises located in central China. The research conclusions of this article indicate that digital transformation is important for curbing enterprises’ greenwashing behavior and achieving green and sustainable development.