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The impact of non-institutional forces on green economy development: From the perspective of digital business environment

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  • Zhang, Zenan
  • Zhu, Yiming

Abstract

Using Chinese listed firms spanning 2009 to 2023, this study investigates the influence and mechanisms of non-institutional forces on green economy, focusing on digital business environment. Results show that enterprises influenced by non-institutional forces exhibit better green economy development. Mechanism analysis reveals three pathways: resource effects (alleviating financing constraints), reputation effects (enhancing managerial integrity), and governance effects (improving internal control quality). Heterogeneity analysis shows the effect is stronger when managers have overseas or financial experience and in non-state-owned enterprises. Moreover, non-institutional forces can offset weak regional business environments and underdeveloped digital economies, supporting green economy upgrading. These findings deepen understanding of how informal cultural forces shape modern enterprise sustainability.

Suggested Citation

  • Zhang, Zenan & Zhu, Yiming, 2026. "The impact of non-institutional forces on green economy development: From the perspective of digital business environment," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325025838
    DOI: 10.1016/j.frl.2025.109334
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