IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v63y2024ics1544612324002745.html
   My bibliography  Save this article

Digital transformation and the herd effect of corporate green investment

Author

Listed:
  • Zhao, Lihong
  • Yuan, Huiai

Abstract

Based on China's unique institutional context, this paper empirically examines the relationship between corporate digital transformation and the herd effect of green investment. The findings indicate that digital transformation significantly promotes the herd effect in corporate green investments. Heterogeneity tests reveal that the enhancing impact of digital transformation on this herd effect varies with the nature of ownership and industry characteristics. The results of this study not only enrich the understanding of the economic consequences of corporate digital transformation but also offer a new research perspective on the herd effect at the organizational level.

Suggested Citation

  • Zhao, Lihong & Yuan, Huiai, 2024. "Digital transformation and the herd effect of corporate green investment," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324002745
    DOI: 10.1016/j.frl.2024.105244
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324002745
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105244?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gordon B. Dahl & Katrine V. L?ken & Magne Mogstad, 2014. "Peer Effects in Program Participation," American Economic Review, American Economic Association, vol. 104(7), pages 2049-2074, July.
    2. Liu, Shasha & Zhao, Huixian & Kong, Gaowen, 2023. "Enterprise digital transformation, breadth of ownership and stock price volatility," International Review of Financial Analysis, Elsevier, vol. 89(C).
    3. Wang, Qunwei & Fan, Zining, 2023. "Green finance and investment behavior of renewable energy enterprises: A case study of China," International Review of Financial Analysis, Elsevier, vol. 87(C).
    4. Wei He & Qian Wang, 2020. "The peer effect of corporate financial decisions around split share structure reform in China," Review of Financial Economics, John Wiley & Sons, vol. 38(3), pages 474-493, July.
    5. Tamazian, Artur & Chousa, Juan Piñeiro & Vadlamannati, Krishna Chaitanya, 2009. "Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries," Energy Policy, Elsevier, vol. 37(1), pages 246-253, January.
    6. Wen, Huwei & Zhong, Qiming & Lee, Chien-Chiang, 2022. "Digitalization, competition strategy and corporate innovation: Evidence from Chinese manufacturing listed companies," International Review of Financial Analysis, Elsevier, vol. 82(C).
    7. Catherine Hardy & Thomas E. Graedel, 2002. "Industrial Ecosystems as Food Webs," Journal of Industrial Ecology, Yale University, vol. 6(1), pages 29-38, January.
    8. Foster, Gigi, 2006. "It's not your peers, and it's not your friends: Some progress toward understanding the educational peer effect mechanism," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1455-1475, September.
    9. Eyraud, Luc & Clements, Benedict & Wane, Abdoul, 2013. "Green investment: Trends and determinants," Energy Policy, Elsevier, vol. 60(C), pages 852-865.
    10. Dou, Bin & Guo, SongLin & Chang, XiaoChen & Wang, Yong, 2023. "Corporate digital transformation and labor structure upgrading," International Review of Financial Analysis, Elsevier, vol. 90(C).
    11. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhao, Zeru, 2024. "Digital Transformation and Enterprise Risk-Taking," Finance Research Letters, Elsevier, vol. 62(PA).
    2. Zhou, Zhongsheng & Li, Zhuo, 2023. "Corporate digital transformation and trade credit financing," Journal of Business Research, Elsevier, vol. 160(C).
    3. Chesney, Alexander J., 2022. "Should I get a master’s degree?," Economics of Education Review, Elsevier, vol. 91(C).
    4. Zhang, Mingyue & Peng, Donghui, 2023. "The impact of digital transformation on corporate cross-border mergers and acquisitions," Finance Research Letters, Elsevier, vol. 58(PB).
    5. Han, Yue & Yang, Jie & Ying, Limeng & Niu, Yanfang, 2024. "The impact of corporate digital transformation on labor employment," Finance Research Letters, Elsevier, vol. 60(C).
    6. Cheng, Hang & Ruan, Ping & Wang, Peng, 2024. "The impact of surging computing power on enterprise digital transformation–Based on quasi-natural experiments set up by the National Supercomputing Center," Finance Research Letters, Elsevier, vol. 65(C).
    7. Deng, Weiguang & Jiang, Shengjun & Li, Xue & Ye, Maoliang, 2024. "Peer effects in donations: Evidence from random assignment of college roommates," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 631-644.
    8. Dinh Cong Hoang & Dinh Cong Tuan, 2023. "Evaluating the Role of Green Financing, International Trade and Alternative Energies on Environmental Performance in Case of Chinese Provinces: Application of Quantile Regression Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 500-508, March.
    9. Xi Chen & Zhigang Chen, 2021. "Can Green Finance Development Reduce Carbon Emissions? Empirical Evidence from 30 Chinese Provinces," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    10. Chen, Fuyong & Zeng, Xiao & Guo, Xiang, 2024. "Green finance, climate change, and green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).
    11. He, Yin & Li, Jianzhong & Ren, Yuheng, 2024. "Digital transformation and corporate ESG information disclosure herd effect," Finance Research Letters, Elsevier, vol. 65(C).
    12. Zhang, Cheng & Fang, Jiming & Ge, Shilong & Sun, Guanglin, 2024. "Research on the impact of enterprise digital transformation on carbon emissions in the manufacturing industry," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 211-227.
    13. Zhang, Chenrui & Wang, Yatong, 2024. "Is enterprise digital transformation beneficial to shareholders? Insights from the cost of equity capital," International Review of Financial Analysis, Elsevier, vol. 92(C).
    14. Peng, Benhong & Xu, Nanjie & Luo, Rong & Elahi, Ehsan & Wan, Anxia, 2024. "Promoting green investment behavior in “belt and road” energy projects: A quantum game approach," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    15. Su, Yingliang & Wu, Jiahua, 2024. "Digital transformation and enterprise sustainable development," Finance Research Letters, Elsevier, vol. 60(C).
    16. Guo, Borui & Huang, Xiaoxia, 2024. "Digital transformation tone signal and the cost of equity: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 59(C).
    17. Wen, Huwei & Chen, Wenjing & Zhou, Fengxiu, 2023. "Does digital service trade boost technological innovation?: International evidence," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    18. Jiang, Yuanyuan & Zheng, Yuanxun & Fan, Wenwen & Wang, Xi, 2024. "Peer digitalization and corporate investment decision," Finance Research Letters, Elsevier, vol. 61(C).
    19. Jiang, Yiyun & Wang, Xiufeng & Sam, Toong Hai & Vasudevan, Asokan, 2024. "Digital transformation, equity pledge and labor income share," Finance Research Letters, Elsevier, vol. 64(C).
    20. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324002745. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.