The impact of bank fintech on ESG greenwashing

This study examines how bank fintech influences ESG greenwashing using a sample of banks and firms in China from 2011 to 2022, finding that bank fintech can reduce ESG greenwashing and confirming the robustness of the results. Mechanism tests demonstrate that bank fintech reduces ESG greenwashing by reducing financial constraints and information asymmetry. Heterogeneity tests demonstrate that this relationship is especially strong for firms in high-polluting industries and firms without bank shares or state ownership. This paper provides empirical evidence of bank fintech's value in reducing ESG greenwashing.