50 shades of dark green: The nexus of narcissistic leadership and corporate greenwashing

This study investigates the relationship between CEO narcissism and corporate greenwashing practices. Given the increasing scrutiny on corporate sustainability, understanding this relationship is crucial to promote genuine environmental practices. Utilising a comprehensive dataset for non-financial S&P 1500 firms from 2007 through to 2018, we find that firms led by narcissistic CEOs are more likely to engage in greenwashing. We further find this relationship to be more pronounced when narcissistic CEOs increasingly engage in CSR initiatives, employ greater financial leverage and face more financial constraints. Our findings suggest that narcissistic traits in CEOs can undermine genuine corporate sustainability efforts, highlighting the need for stronger governance and transparency measures. Our results remain robust to alternative specifications, endogeneity tests and promotes the significance of balanced financial decision-making and enhanced board oversight.