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Impact of artificial intelligence on corporate green transformation

Author

Listed:
  • Li, Huanyu
  • Wu, Hao
  • Rao, Jian

Abstract

This study explores the impact of artificial A-share-listed Chinese companies from 2000 to 2022. The findings indicate that AI significantly enhances intelligence (AI) on corporate green transformation (GX) using data from corporate GX, a conclusion supported by multiple robustness checks. Heterogeneity analyses reveal that AI's positive influence is more pronounced in older firms, politically connected companies, nonheavy-pollution industries, and organizations with higher levels of GX. This study contributes a new explanatory perspective on how businesses can leverage AI to advance GX and provides a theoretical foundation for further research and development in AI-driven corporate sustainability initiatives.

Suggested Citation

  • Li, Huanyu & Wu, Hao & Rao, Jian, 2025. "Impact of artificial intelligence on corporate green transformation," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006877
    DOI: 10.1016/j.frl.2025.107427
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    References listed on IDEAS

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    Cited by:

    1. Lu, Junwei & Gao, He & Yang, Laifeng & Liu, Zhangxin (Frank), 2026. "Government-guided funds and the rise of corporate AI: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 95(C).
    2. Čeryová, Barbara & Árendáš, Peter & Kotlebová, Jana, 2026. "Connectedness and risk transmission across artificial intelligence industries," Research in International Business and Finance, Elsevier, vol. 84(C).
    3. Zhao, Jingjing & Gao, Yuan & Deng, Yao & Zhao, Huifeng, 2025. "Does agricultural green transformation enhance the quality of export products? A perspective of market-oriented environmental regulation," Finance Research Letters, Elsevier, vol. 85(PE).
    4. Ma, Yuan & Zhang, Wenchao & Ma, Chengxiang & Ai, Yudong & Hu, Jun, 2025. "Artificial intelligence, data elements, digital economy, and corporate innovation performance," International Review of Economics & Finance, Elsevier, vol. 103(C).
    5. Li, Zheng & Li, Haitong & Dai, Pengyi, 2026. "Artificial intelligence innovation and financial information quality: Evidence from firm patent data," Research in International Business and Finance, Elsevier, vol. 82(C).
    6. Wang, Yang & Wang, Yongheng & Yang, Pengyu, 2025. "Does artificial intelligence impact corporate ESG performance? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 151(C).
    7. Shi, Wenlei & Ying, Limeng & Ma, Guohua & Niu, Yanfang & Lv, Yuanyuan & Xu, Xiaofang, 2025. "Intelligent manufacturing, media attention, and sustainable development performance," International Review of Financial Analysis, Elsevier, vol. 106(C).

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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