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Does exposure to biodiversity risk drive firms’ digital transformation?

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Listed:
  • Yin, Libo
  • Zhu, Xiaoye
  • Li, Jingtian

Abstract

This paper investigates whether biodiversity risk drives firms’ digital transformation. We find that such risk positively influences digital efforts, especially among firms facing higher natural disaster exposure, policy uncertainty, and risk perception. The effect operates through disrupted supply chains, sustainability constraints, and incentives for green innovation, positioning digital transformation as a key strategic response to biodiversity challenges.

Suggested Citation

  • Yin, Libo & Zhu, Xiaoye & Li, Jingtian, 2025. "Does exposure to biodiversity risk drive firms’ digital transformation?," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007482
    DOI: 10.1016/j.frl.2025.107489
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    References listed on IDEAS

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