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Abstract
ABSTRACT Drawing on data from Chinese A-share listed firms, this study demonstrates that government regulations significantly reduce corporate greenwashing, with green innovation as a key mechanism driving this effect. While regulations initially suppress overall corporate patent output, they also prompt a strategic shift in firms’ innovation strategies, transitioning from traditional to green innovation. These findings offer new insights into the role of local governments in combating corporate greenwashing and highlight the transformative potential of regulatory interventions in fostering sustainable innovation.
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