Does Corporate Governance Really Curb Greenwashing? The Moderating Role of ESG Report Assurance in Indonesia
Abstract
This study examines the effects of the Audit Committee, CEO equity compensation, and board gender diversity on greenwashing, while investigating the moderating role of ESG report assurance. Using purposive sampling, a balanced panel dataset of 26 manufacturing firms (130 observations) listed on the Indonesia Stock Exchange from 2020 to 2024 was analyzed using panel data regression. The results show that the Audit Committee has a significant positive effect on greenwashing, whereas CEO equity compensation and board gender diversity have no significant effects. Furthermore, ESG report assurance does not moderate the effects of the Audit Committee or CEO equity compensation, but it significantly strengthens the negative relationship between board gender diversity and greenwashing. This research contributes to the greenwashing literature by providing empirical evidence on the role of corporate governance and assurance mechanisms within the Indonesian manufacturing sector.
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DOI: https://doi.org/10.24167/jab.v24i2.16007
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