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Digital transformation driving green innovation: Evidence from Chinese A-Share firms

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  • Li, Hemei
  • Liu, Zhenya
  • Hachard, Virginie

Abstract

With its “dual carbon” goals, Chinese firms are being challenged to improve both their environmental and economic performance. Previous research has found that digital transformation can foster the development of firms in various ways. Using a fixed-effects Poisson model, we examine China's A-share listed firms from 2009 to 2022 to elucidate the relationship between digital transformations and green innovation. The results show that digital transformation significantly promotes firms' green transformations. Moreover, digital transformation affects green innovations by attracting media attention, increasing analyst coverage, and reducing firms' rent-seeking behavior. The study further demonstrates that institutional investors and comprehensive green information disclosure can augment digital transformations' positive effects on green innovation.

Suggested Citation

  • Li, Hemei & Liu, Zhenya & Hachard, Virginie, 2024. "Digital transformation driving green innovation: Evidence from Chinese A-Share firms," International Review of Economics & Finance, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:reveco:v:95:y:2024:i:c:s1059056024004799
    DOI: 10.1016/j.iref.2024.103487
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    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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