Does Greenwashing Hinder the Contribution of Fintech to Environmental Sustainability? Evidence from BRICS Countries

Oktay Özkan; Magdalena Radulescu; Mehmet Akif Destek; Madalina Brutu

doi:10.5755/j01.ee.36.4.40054

Authors

Oktay Özkan Department of Business Administration, Faculty of Economics and Administrative Sciences, Tokat Gaziosmanpasa University, Turkey; ARUCAD Research Centre, Arkin University of Creative Arts and Design, Northern Cyprus, Turkey
Magdalena Radulescu Department of Finance, Accounting and Economics, National University of Science and Technology Politehnica Bucharest, Pitesti University Center, Romania; Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Romania; 4Research Methods Application Center of UNEC, Azerbaijan State University of Economics (UNEC), Azerbaijan
Mehmet Akif Destek Research Methods Application Center of UNEC, Azerbaijan State University of Economics (UNEC), Azerbaijan; Department of Economics, Gaziantep University, Turkey; Adnan Kassar School of Business, Lebanese American University, Lebanon
Madalina Brutu Department of Finance, Accounting and Economics, National University of Science and Technology Politehnica Bucharest, Pitesti University Center, Romania,

DOI:

https://doi.org/10.5755/j01.ee.36.4.40054

Keywords:

FinTech, Load capacity factor, Greenwashing, Quantile-on-quantile regression, BRICS

Abstract

The greenwashing problem arises when companies provide misleading information about environmental sensitivity or exaggerate the sensitivity in question. At this point, it is claimed that financial technologies are seen as a solution to greenwashing. However, it is not known how environmentally friendly fintech companies are, in other words, whether fintech activities are a greenwashing problem. In this regard, this study investigates the effects of fintech on the novel load capacity factor to examine whether fintech creates a greenwashing problem for BRICS countries. In doing this, the period of 1992-2021 is analyzed with the quantile-on-quantile technique. According to empirical findings, financial technology activities harm environmental quality. Therefore, it is concluded that companies carrying out fintech activities for BRICS countries cause the greenwashing so the problem of greenwashing hinders fintech's potential contributions to the environment. Based on the findings, policy recommendations are made to audit companies conducting R&D studies on fintech and to penalize companies that make fake reports.

Author Biographies

Oktay Özkan, Department of Business Administration, Faculty of Economics and Administrative Sciences, Tokat Gaziosmanpasa University, Turkey; ARUCAD Research Centre, Arkin University of Creative Arts and Design, Northern Cyprus, Turkey

Oktay Ozkan is an Associate Professor of Finance at the Faculty of Economics and Administrative Sciences, Tokat Gaziosmanpasa University, Turkey. He ranked 624th among approximately 1.5 million candidates in the university entrance exam held by the Republic of Turkey Measurement, Selection and Placement Center in 2006. He graduated from TOBB University of Economics & Technology, Ankara/Turkey. He was awarded the Scientific and Technological Research Council of Turkey (TÜBİTAK) scholarship, a prestigious accolade granted to very few individuals in Turkey, for both his master's and Ph.D. studies. He earned his Ph.D. degree in 2020 from Tokat Gaziosmanpasa University, Turkey. His research has been published in several reputable international journals, such as Energy Economics, Journal of Cleaner Production, Energy, Journal of Environmental Management, Resources Policy, and Research in International Business and Finance. His areas of expertise and research interest include financial markets and institutions, financial forecasting and modeling, investments and portfolio management, applied econometrics, energy and environmental economics, and applied time-series econometrics.
Magdalena Radulescu, Department of Finance, Accounting and Economics, National University of Science and Technology Politehnica Bucharest, Pitesti University Center, Romania; Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Romania; 4Research Methods Application Center of UNEC, Azerbaijan State University of Economics (UNEC), Azerbaijan

Magdalena Radulescu received her B.A. and M.A. in Finance, as well as her Ph.D. and Habilitation for Ph.D. Supervision in Economics, from the Academy of Economic Studies, Bucharest, Romania. She is a Full Professor in the Department of Finance, Accounting and Economics, Faculty of Economic Studies, National University of Science and Technology Politehnica Bucharest, Romania. She also serves as a Ph.D. Supervisor in Economics at the University “Lucian Blaga” of Sibiu, Romania. She is an Associate Editor of Environment, Development and Sustainability (Springer) and Geological Journal (Wiley), and acts as Guest Editor for numerous international journals, including Journal of Risk and Financial Management, Frontiers in Environmental Sciences, Frontiers in Energy Research, Environmental Science and Pollution Research, Environmental Research Communication, Utilities Policy, Environment, Development and Sustainability, Journal of Urban Technology, Resources Policy, etc. She has been recognized among the top 2% of the world’s most influential scientists for 2024, as listed by Stanford University.
Mehmet Akif Destek, Research Methods Application Center of UNEC, Azerbaijan State University of Economics (UNEC), Azerbaijan; Department of Economics, Gaziantep University, Turkey; Adnan Kassar School of Business, Lebanese American University, Lebanon

Mehmet Akif Destek is an Associate Professor of Economics at the Faculty of Economics and Administrative Sciences, Gaziantep University, Turkey. His research interests include energy economics, environmental economics, and applied economics. He has published in some leading Web of Science–indexed journals, such as Energy, Renewable Energy, Journal of Cleaner Production, Resources Policy, Sustainable Development, Science of the Total Environment, and Technological Forecasting and Social Change. The researcher has been listed among the top 2% of the world’s most influential scientists for 2021, 2022, 2023, and 2024 by Stanford University, and according to the RePEc platform, he ranks among the best young economists in the world in 2024.
Madalina Brutu, Department of Finance, Accounting and Economics, National University of Science and Technology Politehnica Bucharest, Pitesti University Center, Romania,

Madalina Brutu is Associate Professor at the National University of Science and Technology Politehnica Bucharest, Romania. She graduated from the Management Faculty at the University Constantin Brancoveanu Pitesti and earned her PhD from the Academy of Economic Studies, Bucharest, Romania. Her expertise is in organizational management.