Abstract

This study examines the impact of board of directors' network on corporate brownwashing, utilizing hand-collected data from Chinese A-share listed companies in heavily polluting industries between 2012 and 2020. The results indicate that directors' network is negatively associated with corporate brownwashing. Additionally, the effect is more pronounced when a firm (1) has more interlocked directors with overseas backgrounds and (2) has more geographically close directors. Furthermore, we find that the impact of directors' network on brownwashing is stronger for firms with a higher commitment to corporate social responsibilities and facing more intense market competition. These findings, which are robust to a set of sensitivity checks, have important implications for regulators and practitioners.