What drives stock market reactions to greenwashing? An event study of European companies

URN to cite this document:: urn:nbn:de:bvb:355-epub-780292
DOI to cite this document:: 10.5283/epub.78029

Dorfleitner, Gregor

; Eckberg, Jens

; Utz, Sebastian

; Brehm, Teresa

License: Creative Commons Attribution 4.0
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Date of publication of this fulltext: 29 Oct 2025 05:33

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Item type:	Article
Open Access Type:	DEAL (Elsevier)
Journal or Publication Title:	Finance Research Letters
Publisher:	Elsevier
Volume:	86
Number of Issue or Book Chapter:	Part F
Page Range:	p. 108795
Date:	31 October 2025
Institutions:	Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Finanzierung (Prof. Dr. Gregor Dorfleitner)
Keywords:	Greenwashing, Stock market, Event study, Financial performance, Cumulative average abnormal returns
Dewey Decimal Classification:	300 Social sciences > 330 Economics
Status:	Published
Refereed:	Yes, this version has been refereed
Created at the University of Regensburg:	Partially
Item ID:	78029

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Abstract

This study examines stock market reactions in response to 296 greenwashing events involving STOXX Europe 600 companies. The results indicate that companies with the lowest total assets in our sample experience negative cumulative abnormal returns. Financially material cases, which are likely to affect company performance through legal and investor-related consequences, also lead to negative ...