Greenwashing, bank financial performance and the moderating role of gender diversity

Drawing on legitimacy and upper echelons theories, the study explores the impact of greenwashing on bank performance and whether women on boards play a moderating role in this relationship. Using a sample of European listed banks over the period 2013–2020, our findings show greenwashing has a negative effect on bank performance, yet female directors play a moderating role in this relationship. Overall, our research contributes to the emerging literature on the impact of greenwashing on corporate financial performance, shedding new light on the role played by board gender diversity. Our study, therefore, has significant implications for policymakers, regulators and banks.