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Intensity of environmental regulation, integration of digital and physical realms, and level of corporate green development

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  • Xiao, Yu
  • Wu, Junxian
  • Tu, Yongqian

Abstract

This study analyzes Chinese listed companies from 2010 to 2022, examining the relationship between environmental regulation intensity, digital and physical realm integration, and corporate green development level. Findings show that increased environmental regulatory stringency increases corporate green development levels in a non-linear, inverted “U”-shaped pattern. Notably, the integration of digital and physical realms exerts a negative moderating effect on this relationship. This effect is particularly pronounced in high-tech industries and non-heavily polluting enterprises, where the moderating impact of digital and physical realms is more accentuated than in other enterprise categories.

Suggested Citation

  • Xiao, Yu & Wu, Junxian & Tu, Yongqian, 2025. "Intensity of environmental regulation, integration of digital and physical realms, and level of corporate green development," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004015
    DOI: 10.1016/j.frl.2025.107138
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