Thewissen, JamesMaud Kornreich2025-05-142025-05-142025-05-142022https://hdl.handle.net/2078.2/29464In recent years, due to the growing interest of investors in investing in environmental, social and governance issues, academic research has multiplied, highlighting the problems of information asymmetry. One of the information asymmetry problems is called greenwashing and is defined as the mis-disclosure related to environmental issues by companies. In this thesis we analyze this problem and its effects on companies’ value. To detect greenwashing, we have used a method based on the wording of ESG reports inspired by Ruiz-Blanco et al. (2021). We have applied this method to our sample of 508 ESG reports, for the period extending from 2014 to 2019. The relationship between greenwashing and the short, medium, and long-term stock market reactions around the release of ESG reports, is then studied as well as firms’ financial performance. We found a positive effect of greenwashing on medium-term market reactions as well as on the company’s economic performance. However, companies that did not engage in greenwashing had better long-term market reactions. Finally, we have outlined possible future research directions, which complement the methods used in this thesis, using a more in-depth analysis of social (“bluewashing) and governmental (“blackwashing”) issues in the ESG reports.CSRGreenwashingCorporate Financetext::thesis::master thesisthesis:36587