The Impact of Greenwashing Practices on Stock Liquidity and Volatility in Indonesia

著者

  • Melvien Deisie Christin Welang Universitas Pelita Harapan
  • Juli Hendri Universitas Pelita Harapan
  • Sung Suk Kim Universitas Pelita Harapan

##semicolon##

Greenwashing##common.commaListSeparator## Liquidity ##common.commaListSeparator## Volatility

要旨

This study examines the impact of greenwashing on stock liquidity and volatility, using data from companies listed on the Indonesian stock exchange in the period 2018 to 2022. The results show that greenwashing has a positive impact on liquidity. The results show that greenwashing has a positive effect with stock price volatility, which indicates that increased greenwashing leads to higher market uncertainty. Furthermore, greenwashing has a negative effect on liquidity during the Covid-19 pandemic, but the effect of greenwashing on stock volatility is not different during the Covid-19 period.

##submission.citations##

Amihud, Y. (2002). Illiquidity and stock returns: Cross-section and time-series effects. Journal of Financial Markets,5 (1), 31-56. https://doi.org/10.1016/S1386-4181(01)00024-6

Bo, S., Battisti, E., Nirino, N., & Salvi, A. (2025). Greenwashing and Disciplinary Effect: The Moderating Role of Corporate Liquidity. Business Ethics, the Environment and Responsibility.

Chen, P., & Dagestani, A. A. (2023). Greenwashing behavior and firm value - From the perspective of board characteristics. Corporate Social Responsibility and Environmental Management,30 (5), 2330-2343. https://doi.org/10.1002/csr.2488

Delmas, M. A., & Burbano, V. C. (2011). The Drivers of Greenwashing. California Management Review,54 (1), 64-87. https://doi.org/10.1525/cmr.2011.54.1.64

Diamond, D. W., & Verrecchia, R. E. (1991). Disclosure, Liquidity, and the Cost of Capital. The Journal of Finance,46 (4), 1325-1359. https://doi.org/10.1111/j.1540-6261.1991.tb04620.x

Freshtriana, F., & Kim, S. S. (2025). The Effect of Greenwashing on Company Value. Owner,9 (1), 140-148. https://doi.org/10.33395/owner.v9i1.2511

Hallin, M., Mathias, C., Pirotte, H., & Veredas, D. (2011). Market liquidity as dynamic factors. Journal of Econometrics,163 (1), 42-50. https://doi.org/10.1016/j.jeconom.2010.11.005

Kurlat, P. (2018). Liquidity as Social Expertise. The Journal of Finance,73 (2), 619-656. https://doi.org/10.1111/jofi.12606

Lyon, T. P., & Maxwell, J. W. (2011). Greenwash: Corporate Environmental Disclosure under Threat of Audit. Journal of Economics & Management Strategy,20 (1), 3-41. https://doi.org/10.1111/j.1530-9134.2010.00282.x

Marquis, C., Toffel, M. W., & Zhou, Y. (2011). Scrutiny, Norms, and Selective Disclosure: A Global Study of Greenwashing. Edward Elgar Publishing. https://doi.org/10.4337/9781849807630

Parguel, B., Benoit-Moreau, F., & Russell, C. A. (2015). Can evoking nature in advertising mislead consumers? The power of 'executional greenwashing'. International Journal of Advertising,34 (1), 107-134. https://doi.org/10.1080/02650487.2014.996116

Schmittmann, J. M., & Gao, Y. (2022a). Green Bond Pricing and Greenwashing under Asymmetric Information. IMF Working Papers,2022 (246), 1. https://doi.org/10.5089/9798400227004.001

Schmittmann, J. M., & Gao, Y. (2022b). Green Bond Pricing and Greenwashing under Asymmetric Information. IMF Working Papers,2022 (246), 1. https://doi.org/10.5089/9798400227004.001

Schmuck, D., Matthes, J., & Naderer, B. (2018). Misleading Consumers with Green Advertising? An Affect-Reason-Involvement Account of Greenwashing Effects in Environmental Advertising. Journal of Advertising,47 (2), 127-145. https://doi.org/10.1080/00913367.2018.1452652

Siano, A., Vollero, A., Conte, F., & Amabile, S. (2017). "More than words": Expanding the taxonomy of greenwashing after the Volkswagen scandal. Journal of Business Research.

Spence, M. (1973). Job Market Signaling*. The Quarterly Journal of Economics,87 (3), 355-374. https://doi.org/10.2307/1882010

Stambaugh, R. F., & Yuan, Y. (2017). Mispricing Factors. The Review of Financial Studies,30 (4), 1270-1315. https://doi.org/10.1093/rfs/hhw107

Watson, A., Shrives, P., & Marston, C. (2002). VOLUNTARY DISCLOSURE OF ACCOUNTING RATIOS IN THE UK. The British Accounting Review,34 (4), 289-313. https://doi.org/10.1006/bare.2002.0213

Wu, M.-W., & Shen, C.-H. (2013). Corporate social responsibility in the banking industry: Motives and financial performance. Journal of Banking & Finance,37 (9), 3529-3547. https://doi.org/10.1016/j.jbankfin.2013.04.023

Xu, S., & Liu, D. (2018a). Do Financial Markets Care about Corporate Social Responsibility Disclosure? Further Evidence from China. Australian Accounting Review,28 (1), 79-103. https://doi.org/10.1111/auar.12161

Xu, S., & Liu, D. (2018b). Do Financial Markets Care about Corporate Social Responsibility Disclosure? Further Evidence from China. Australian Accounting Review,28 (1), 79-103. https://doi.org/10.1111/auar.12161

Yu, E. P., Guo, C. Q., & Luu, B. V. (2018). Environmental, social and governance transparency and firm value. Business Strategy and the Environment,27 (7), 987-1004. https://doi.org/10.1002/bse.2047

Zhang, D. (2022). Environmental regulation and firm product quality improvement: How does the greenwashing response? International Review of Financial Analysis,80 , 102058. https://doi.org/10.1016/j.irfa.2022.102058

##submission.downloads##

出版済

2025-12-10

巻号

巻 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt)

セクション

Articles

##submission.license##

##submission.license.cc.by-nc-sa4.footer##