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Digital finance and corporate environmental violations

Author

Listed:
  • Khalid, Fahad
  • Sun, Xinhui
  • Akram, Rabia
  • Srivastava, Mohit

Abstract

Using a sample of 1048 A-share listed firms for the period 2011–2020, we analyze the direct and indirect pathways through which digital finance shapes environmental governance mechanisms within corporations. Our findings reveal that digital finance mitigates environmental violations through information (internal control) and financial (environmental investment) mechanisms. The primary findings remain consistent after using battery of robustness tests. Moreover, the negative influence of digital finance on environmental violations is more pronounced for state-owned firms, heavy polluters, and firms operating in regions with stringent environmental regulations. Overall, this research contributes valuable insights into the firm-level consequences of digital finance integration and emphasizes the importance of robust regulatory frameworks for environmental sustainability in the digital age.

Suggested Citation

  • Khalid, Fahad & Sun, Xinhui & Akram, Rabia & Srivastava, Mohit, 2024. "Digital finance and corporate environmental violations," Finance Research Letters, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324007049
    DOI: 10.1016/j.frl.2024.105674
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    References listed on IDEAS

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    More about this item

    Keywords

    Digital finance; Environmental sustainability; Violation;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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