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The AI-sustainability Nexus: How does intelligent transformation affect corporate green innovation?

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  • Xu, Chongchong
  • Lin, Boqiang

Abstract

The deep integration of the digital economy and sustainable development has emerged as a critical theme in the current socio-economic transformation. However, existing research lacks a comprehensive exploration of how enterprise intelligent transformation empowers green innovation. This study employs intelligent manufacturing demonstration projects as a quasi-experiment, utilizing a staggered difference-in-differences model to examine the impact of enterprise intelligent transformation on green innovation. We analyze data from Chinese manufacturing A-share listed companies from 2011 to 2022. The findings reveal that: (1) Intelligent transformation significantly enhances both the quantity and quality of corporate green innovation. (2) This effect is realized through channels such as attracting on-site investigations by institutional investors, increasing media attention, improving internal control quality, and promoting human capital upgrading. (3) Heterogeneity analysis indicates that intelligent transformation exerts a more pronounced influence on green innovation in large-scale firms, high-tech industry firms, and firms located in regions with stringent environmental regulations. Based on these findings, we propose targeted recommendations for refining policies on enterprise intelligent transformation and green innovation.

Suggested Citation

  • Xu, Chongchong & Lin, Boqiang, 2025. "The AI-sustainability Nexus: How does intelligent transformation affect corporate green innovation?," International Review of Financial Analysis, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:finana:v:102:y:2025:i:c:s1057521925001942
    DOI: 10.1016/j.irfa.2025.104107
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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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