Mandatory sustainability disclosure, modernization and greenwashing: evidence from Indonesian listed companies

Greenwashing has become a phenomenon for companies to overcome the enormous pressure posed by mandatory environmental sustainability disclosure and win environmental legitimacy. The purpose of this study is to investigate the relationship between greenwashing and ESG performance, governance characteristics, and technological innovation. We selected companies listed on IDX from 2018 to 2022 and found that women on board and technological innovation have associations with greenwashing, while ESG performance and board size are not significantly associated with greenwashing. Our findings also provide a reference for companies and governments to learn the influence of ESG performance, governance characteristics, and technological innovation on greenwashing.