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The impact of artificial intelligence application on company environmental investment in Chinese manufacturing companies

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  • Dong, Zhenlin
  • Xin, Zijun
  • Liu, Dewen
  • Yu, Fangkun

Abstract

The environmental effect of operating activities in the manufacturing industry is crucial to the sustainable development of the economy and society. Since we have entered the era of information explosion, the artificial intelligence has been involved to address the environmental problems caused by daily operations. This study examines the complex relation between artificial intelligence application and corporate environmental investment. The results show that: (1) AI application have a direct and positive impact on corporate environmental investment; (2) Managerial myopia plays a negative moderating role, inhibiting the positive effect of AI application on corporate environmental investment; (3) Companies' pollution emission mediates the relationship between AI application and corporate environmental investment. When reduced by AI application, a lower pollution emission will trigger a larger scale of corporate environmental investment; (4) Compared with under-valued companies and those in the Western region, AI application has a greater positive impact on the environmental investment of the over-valued companies and those in the East-Central region. By verifying the relationship between artificial intelligence applications and manufacturing enterprise investment, this study has a positive impact on promoting green innovation in the manufacturing industry and is of great significance for sustainable development strategies.

Suggested Citation

  • Dong, Zhenlin & Xin, Zijun & Liu, Dewen & Yu, Fangkun, 2024. "The impact of artificial intelligence application on company environmental investment in Chinese manufacturing companies," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    • Handle: RePEc:eee:finana:v:95:y:2024:i:pb:s1057521924003351
    DOI: 10.1016/j.irfa.2024.103403
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