CEO turnover and ESG greenwashing: evidence from China

To extend the literature on the drives of greenwashing in environment, social, and governance (ESG), we examine the impact of CEO turnover on ESG greenwashing. Using data of the 2009–2022 Chinese firms, we find that CEO turnover increases ESG greenwashing. Moreover, this effect is stronger for firms whose CEO successors come from outside the firm, and are under higher performance pressure. Our results suggest that after firms have experienced CEO turnover, new CEOs will tend to engage in ESG greenwashing to secure their position.