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Dual environmental regulation and corporate green transformation: How does digital leadership affect transformation effectiveness?

Author

Listed:
  • Li, Qian
  • Cai, Yunchao
  • Qiao, Yajie
  • Tan, Haili

Abstract

This study investigates the impact mechanisms and boundary conditions of dual environmental regulation on corporate green transformation using Chinese listed company data. Results demonstrate that formal, informal, and dual environmental regulations all significantly promote corporate green transformation. Digital leadership exerts a positive moderating effect on these regulatory impacts. Mediation analysis reveals environmental information disclosure quality as a key transmission channel. Heterogeneity analysis indicates digital technology application breadth universally enhances regulatory effects, while depth shows regulation-type dependent effects. Additionally, environmental regulation mitigates corporate green innovation bubbles.

Suggested Citation

  • Li, Qian & Cai, Yunchao & Qiao, Yajie & Tan, Haili, 2025. "Dual environmental regulation and corporate green transformation: How does digital leadership affect transformation effectiveness?," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325019440
    DOI: 10.1016/j.frl.2025.108690
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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