Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280965 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
SAFE Working Paper No. 410
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
This paper investigates stock market reaction to greenwashing by analyzing a new channel whereby companies change their names to green-related ones (i.e., names that evoke green and sustainable sentiments) to persuade the public that their activities are green. The findings reveal a striking positive stock price reaction to the announcement of corporate name changes to green-related names only for companies not involved in green activities at the time of the announcement. However, over an extended period of time, companies unrelated to green activities experience substantial negative abnormal returns if they fail to align their operational focus with the new name after the change.
Subjects: 
Corporate Social Responsibility
Sustainable Investments
Greenwashing
Corporate Name Change
JEL: 
M14
G24
G11
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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