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Can China go green through digitalization? Evidence from China's listed firms

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  • Zhao, Zhihui
  • Liu, Wei
  • Ning, Yiyi
  • Yang, Shiyu

Abstract

This paper employs textual analysis of China's listed firms in 2007–2022 to investigate the influence of corporate digitalization on corporate green innovation. Utilizing the frequency of digital-related terms as an indicator of corporate digitalization degree, we find that: First, corporate digitalization has a positive impact on green innovation, which has been confirmed by several robustness tests. Second, this positive impact is heterogeneous in different digitalization types and different green innovation types. Third, environmental disclosure, absorptive capacity, and internal control are three main mechanisms. These findings can offer insights into the coordinated development of digitalization and green transition in emerging markets.

Suggested Citation

  • Zhao, Zhihui & Liu, Wei & Ning, Yiyi & Yang, Shiyu, 2024. "Can China go green through digitalization? Evidence from China's listed firms," International Review of Economics & Finance, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:reveco:v:94:y:2024:i:c:s1059056024003903
    DOI: 10.1016/j.iref.2024.103398
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    More about this item

    Keywords

    Corporate digitalization; Green innovation; Environmental disclosure; Absorptive capacity; Internal control;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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