Articole

Greenwashing and the Capital Market Reaction Theoretical Analysis and Recent Case Studies

MV
Maria Văduva ✉
“Constantin Brancuși” University of Târgu-Jiu
CV
Cecilia Elena Văduva
“Constantin Brancuși” University of Târgu-Jiu
2026 / Nr. 4 pp. 546–551 Engleză DOI: 10.65631/jes.4.2026.49
Constantin Brâncuși University of Târgu Jiu Economics Series · 2026
Greenwashing refers to the practice of companies exaggerating or providing misleading information about their positive environmental impact in order to improve their public image and attract green investment. The article analyzes the effects of greenwashing on the capital market, focusing on investor reactions and current regulations. In a global context where sustainable investments are growing exponentially, greenwashing represents a major threat to investor confidence and the integrity of financial markets. Through case studies and recent examples, it explores both why companies resort to greenwashing and how investors and regulators are reacting to combat these practices. It also discusses emerging regulations and standards aimed at protecting the integrity of financial markets.
Greenwashing capital market financial regulations transparency risk assessment.
Publicat
31.08.2026
MV
Maria Văduva Corespondent
“Constantin Brancuși” University of Târgu-Jiu
CV
Cecilia Elena Văduva
“Constantin Brancuși” University of Târgu-Jiu
Maria Văduva, Cecilia Elena Văduva (2026). Greenwashing and the Capital Market Reaction Theoretical Analysis and Recent Case Studies. Constantin Brâncuși University of Târgu Jiu Economics Series, 2(1), 546–551. https://doi.org/10.65631/jes.4.2026.49
Bo, S., Battisti, E., Nirino, N., & Salvi, A. Greenwashing and Disciplinary Effect: The Moderating Role of Corporate Liquidity. Business Ethics, the Environment and Responsibility, 2025. DOI: 10.1111/beer.12806 Chen, P., & Dagestani, A. A. Greenwashing behavior and firm value - From the perspective of board characteristics. Corporate Social Responsibility and Environmental Management, 30(5), 2023, p. 2330-2343. https://doi.org/10.1002/csr.2488 Cramer, J., & Anand, R. Greenwashing in the Corporate Sector: Implications for Stakeholders. Journal of Business Ethics, 154(2), 2020. Delmas, M. A., & Burbano, V. C. The Drivers of Greenwashing. California Management Review, 54, 2011, p. 64-87. https://doi.org/10.1525/cmr.2011.54.1.64 Freshtriana, F., & Kim, S. S. The Effect of Greenwashing on Company Value. Owner, 9(1), 2025, p.140-148. https://doi.org/10.33395/owner.v9i1.2511 Michel, L., & Salm, W. Understanding Greenwashing: The Hidden Threat to Sustainable Investing. Journal of Sustainable Finance and Investment, 9(1), 2019, p.16-34. Schmittmann, J. M., & Gao, Y. Green Bond Pricing and Greenwashing under Asymmetric Information. IMF Working Papers, 2022, p. 246. https://doi.org/10.5089/9798400227004.001 Welang M. D. C., Hendri J., S. S. Kim. The Impact of Greenwashing Practices on Stock Liquidity and Volatility in Indonesia. ConEnt The 5th International Conference on Entrepreneurship, 2025, p. 448-460. https://ojs.uph.edu/index.php/IConEnt/article/view/10650 https://purelyinvesting.com/greenwashing-in-investing/ https://www.reuters.com/sustainability/german-asset-manager-dws-fined-25-mln-eur-greenwashing-case-2025-04-02/ https://esg.sustainability-directory.com/question/what-are-the-long-term-consequences-of-greenwashing-for-investors/ https://financialintelligence.ro/fenomenul-greenwashing-in-contextul-sectorului-financiar-european/ https://www.morrison-finance.com/post/greenwashing-in-financial-markets-detection-regulation-and-strategic-responses https://www.ft.com/content/9f425c25-4fc3-45de-bcc5-e9c75d6d14d3
Scroll to Top