Navigating greenwashing in the G8: Insights into family-owned firms, technology innovation, and economic policy uncertainty

Our study provides practical insights into the impact of greenwashing on Corporate Financial Performance (CFP) and investment efficiency. We delve into the moderating influences of family-owned firms, technological innovation, and economic policy uncertainty in the nexus between greenwashing and CFP. Using a Method of Moments Quantile Regression (MMQR) model and conducting robustness tests, our results suggest that in G8 nations, family-oriented stakeholders struggle to discern greenwashing due to low information asymmetry. However, technological innovation and reduced economic policy uncertainty enhance the identification of greenwashing. Greenwashing enhances firm value by improving disclosure quality, addressing stakeholder concerns, and easing financing constraints. Notably, heavily polluting and mandatory disclosure firms experience more significant economic performance from greenwashing. This study provides practical implications for firms, policymakers, and stakeholders, fostering sustainable development in G8 nations.