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Digital economy and corporate sustainability: Mediating roles of green innovation and risk-taking

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  • Bu, Wei
  • Yan, Zhongyi
  • Yang, Shuning

Abstract

This study examines how digital economic development affects corporate sustainability through green innovation and risk-taking. Analyzing 23,603 firm-year observations from listed Chinese companies (2010–2022), we demonstrate that digital economy significantly enhances corporate sustainability through dual pathways of fostering environmental technological advancement and promoting strategic risk-taking. Heterogeneity analyses revealed stronger effects in nonpolluting industries and privately owned enterprises. Findings indicate that, through digital economy development, corporate leaders can implement digital transformation strategies and policymakers can promote sustainable business practices.

Suggested Citation

  • Bu, Wei & Yan, Zhongyi & Yang, Shuning, 2025. "Digital economy and corporate sustainability: Mediating roles of green innovation and risk-taking," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004635
    DOI: 10.1016/j.frl.2025.107200
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    References listed on IDEAS

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    Cited by:

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    2. Jiawen Li, 2025. "New Infrastructure Construction, Institutional Pressure, and Sustainable Development Performance: Empirical Evidence from Chinese Manufacturing Enterprises," Sustainability, MDPI, vol. 17(19), pages 1-23, September.
    3. Fatima Batool & Kainat Iftikhar & Muhammad Nadir Shabbir, 2025. "Does green innovation pay off in China? Market valuation, investor sentiment, and risk-taking in A-listed firms," Risk Management, Palgrave Macmillan, vol. 27(3), pages 1-35, September.
    4. Wang, Lei & Zhao, Pu & Zhang, Tingting, 2025. "Does rhetorical nationalism promote innovation sustainability?," International Review of Economics & Finance, Elsevier, vol. 102(C).

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