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Digital transformation and environmental information disclosure in China: The moderating role of top management team's ability

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  • Yongxin Chen
  • Min Zhang
  • Lane Matthews
  • Hangfei Guo

Abstract

Companies rely on advanced digital technologies to empower their operations and sustainable development. Environmental information disclosure (EID) by companies is critical in achieving net zero goals and sustainability. This study empirically investigates the impact of digital transformation (DT) on EID and how the ability of the top management team affects the relationship. We build a model based on the information processing theory and test it using panel data collected from 929 listed companies in China. The findings show an inverted U‐shaped relationship between DT and environmental information disclosure, and the top management team's ability weakens the relationship. The study provides empirical evidence that DT is a double‐edged sword for environmental information disclosure. Also, the results suggest that the top management team may substitute or complement digital technologies in EID during the different stages of DT.

Suggested Citation

  • Yongxin Chen & Min Zhang & Lane Matthews & Hangfei Guo, 2024. "Digital transformation and environmental information disclosure in China: The moderating role of top management team's ability," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8456-8470, December.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:8:p:8456-8470
    DOI: 10.1002/bse.3930
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