The impact of greenwashingon companies: An analysis of stock market reactions and short-term financial performance.

Identifier:  TFG:10180

Handle: https://hdl.handle.net/20.500.11797/TFG10180

Authors:  Partido Pérez, Rosa

Abstract:
This final-year dissertation analyses the effect of greenwashing on the short-term stock market reaction of a sample of listed European companies. The study is based on the growing importance of sustainability in the business and financial sectors and on the fact that greenwashing practices can generate reputational and economic risks for companies. In this context, the aim is to examine whether public accusations of greenwashing trigger a negative market response and whether this varies according to the companies’ ESG scores. The results show that the stock market reaction is neither uniform nor generalisable, but depends on the specific case, the sector of activity and the business context. The analysis by ESG ratings does not confirm that companies with higher scores are systematically penalised more, and, at sector level, significant differences are observed in the intensity and direction of the reaction.