IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i8p6838-d1126665.html
   My bibliography  Save this article

Fiscal Decentralization, Enterprise Digital Transformation and Enterprise Green Innovation—The Case of 11 Years A-Share Listed Companies in China

Author

Listed:
  • Anqi Wang

    (School of Management, China University of Mining & Technology, Beijing 100083, China)

  • Lianmei Zhu

    (School of Management, China University of Mining & Technology, Beijing 100083, China)

  • Huanan Sun

    (School of Management, China University of Mining & Technology, Beijing 100083, China)

  • Shali Wang

    (School of Management, China University of Mining & Technology, Beijing 100083, China
    School of Economics and Management, Guizhou University of Engineering Science, Bijie 551700, China)

  • Haijing Ma

    (Institute of Climate Change and Sustainable Development, Tsinghua University, Beijing 100084, China)

Abstract

In the context of accelerating economic transformation and upgrading, and comprehensively promoting the construction of digital China and ecological civilization in China, this paper uses text mining and OLS to quantitatively study the relationship between fiscal decentralization, enterprise digital transformation and green innovation in 31 provinces from 2011 to 2021. This study finds that fiscal decentralization will promote enterprise green innovation and digital transformation, and that digital transformation has a partial mediating effect between fiscal decentralization and enterprise green innovation. Furthermore, this expansive study finds that fiscal decentralization has a positive role in promoting the green innovation of heterogeneous enterprises and enterprises in different regions, among which its promotion effect on state-owned enterprises is higher than that of private enterprises, and its promotion effect on enterprises in the central and western regions is higher than that of enterprises in the eastern region. Moreover, an inverted U-shaped relationship exists between fiscal decentralization and the green innovation of enterprise. In addition, financing constraints have a masking effect between fiscal decentralization and green innovation in enterprise and green innovation significantly promotes enterprise environmental, social and governance (ESG) development.

Suggested Citation

  • Anqi Wang & Lianmei Zhu & Huanan Sun & Shali Wang & Haijing Ma, 2023. "Fiscal Decentralization, Enterprise Digital Transformation and Enterprise Green Innovation—The Case of 11 Years A-Share Listed Companies in China," Sustainability, MDPI, vol. 15(8), pages 1-21, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6838-:d:1126665
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/8/6838/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/8/6838/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Di Wang & Zhiyuan Zhang & Ruyi Shi, 2022. "Fiscal Decentralization, Green Technology Innovation, and Regional Air Pollution in China: An Investigation from the Perspective of Intergovernmental Competition," IJERPH, MDPI, vol. 19(14), pages 1-18, July.
    2. Qincheng Zhang & Mingzeng Yang & Shanshan Lv, 2022. "Corporate Digital Transformation and Green Innovation: A Quasi-Natural Experiment from Integration of Informatization and Industrialization in China," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    3. Yu Zhang & Yajuan Wang, 2022. "Do Managerial Ties Help or Hinder Corporate Green Innovation? The Moderating Roles of Contextual Factors," IJERPH, MDPI, vol. 19(7), pages 1-19, March.
    4. Meng Lingyan & Ze Zhao & Haider Ali Malik & Asif Razzaq & Hui An & Marria Hassan, 2022. "Asymmetric impact of fiscal decentralization and environmental innovation on carbon emissions: Evidence from highly decentralized countries," Energy & Environment, , vol. 33(4), pages 752-782, June.
    5. Ruichao Liu & Xiaoyan Zhang & Pengcheng Wang, 2022. "A Study on the Impact of Fiscal Decentralization on Green Development from the Perspective of Government Environmental Preferences," IJERPH, MDPI, vol. 19(16), pages 1-22, August.
    6. Jin, Jing & Zou, Heng-fu, 2002. "How does fiscal decentralization affect aggregate, national, and subnational government size?," Journal of Urban Economics, Elsevier, vol. 52(2), pages 270-293, September.
    7. Wu, Keping & Fu, Yumei & Kong, Dongmin, 2022. "Does the digital transformation of enterprises affect stock price crash risk?," Finance Research Letters, Elsevier, vol. 48(C).
    8. Dingqing Wang & Enqi Zhang & Hongwei Liao, 2022. "Does Fiscal Decentralization Affect Regional High-Quality Development by Changing Peoples’ Livelihood Expenditure Preferences: Provincial Evidence from China," Land, MDPI, vol. 11(9), pages 1-20, August.
    9. Zhang, Zhengyi & Jin, Jun & Li, Shijing & Zhang, Yuanmin, 2023. "Digital transformation of incumbent firms from the perspective of portfolios of innovation," Technology in Society, Elsevier, vol. 72(C).
    10. Du, Juntao & Shen, Zhiyang & Song, Malin & Zhang, Linda, 2023. "Nexus between digital transformation and energy technology innovation: An empirical test of A-share listed enterprises," Energy Economics, Elsevier, vol. 120(C).
    11. Lai, Edwin L. -C., 1998. "International intellectual property rights protection and the rate of product innovation," Journal of Development Economics, Elsevier, vol. 55(1), pages 133-153, February.
    12. Boubakri, Narjess & Cosset, Jean-Claude & Saffar, Walid, 2013. "The role of state and foreign owners in corporate risk-taking: Evidence from privatization," Journal of Financial Economics, Elsevier, vol. 108(3), pages 641-658.
    13. Hua Feng & Fengyan Wang & Guomin Song & Lanlan Liu, 2022. "Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism," IJERPH, MDPI, vol. 19(17), pages 1-31, August.
    14. Xiumei Xu & Ruolan Jing & Feifei Lu, 2022. "Environmental Regulation, Corporate Social Responsibility (CSR) Disclosure and Enterprise Green Innovation: Evidence from Listed Companies in China," IJERPH, MDPI, vol. 19(22), pages 1-24, November.
    15. Wei Wang & Hailin Chen, 2023. "Extrusion Effect or Promotion Effect? The Effect of Environmental Regulation on Enterprise Green Innovation," IJERPH, MDPI, vol. 20(3), pages 1-18, January.
    16. Charles J. Hadlock & Joshua R. Pierce, 2010. "New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index," The Review of Financial Studies, Society for Financial Studies, vol. 23(5), pages 1909-1940.
    17. Wenbin Cao & Ying Zhang & Peng Qian, 2019. "The Effect of Innovation-Driven Strategy on Green Economic Development in China—An Empirical Study of Smart Cities," IJERPH, MDPI, vol. 16(9), pages 1-11, April.
    18. Shang, Yuping & Raza, Syed Ali & Huo, Zhe & Shahzad, Umer & Zhao, Xin, 2023. "Does enterprise digital transformation contribute to the carbon emission reduction? Micro-level evidence from China," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 1-13.
    19. Si Luo & Miaochao Chen, 2022. "Digital Finance Development and the Digital Transformation of Enterprises: Based on the Perspective of Financing Constraint and Innovation Drive," Journal of Mathematics, Hindawi, vol. 2022, pages 1-10, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tong Tang & Chun-Ai Ma & Heng-Yu Lv & Fu-Ying Hao, 2023. "The Effect of Corporate Resource Abundance on the Transformation and Upgrading of Manufacturing Enterprises from the Perspective of Whole Process Innovation," Sustainability, MDPI, vol. 15(14), pages 1-31, July.

    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. Huanan Sun & Lianmei Zhu & Anqi Wang & Shali Wang & Haijing Ma, 2022. "Analysis of Regional Social Capital, Enterprise Green Innovation and Green Total Factor Productivity—Based on Chinese A-Share Listed Companies from 2011 to 2019," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    2. Hua, Zesu & Yu, Yihua, 2023. "Digital transformation and the impact of local tournament incentives: Evidence from publicly listed companies in China," Finance Research Letters, Elsevier, vol. 57(C).
    3. Zhu, Changchun & Li, Na & Ma, Jing, 2024. "Impact of CEO overconfidence on enterprise digital transformation: Moderating effect based on digital finance," Finance Research Letters, Elsevier, vol. 59(C).
    4. Qi‐an Chen & Shuxiang Tang & Yuan Xu, 2022. "Do government subsidies and financing constraints play a dominant role in the effect of state ownership on corporate innovation? Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3698-3714, December.
    5. Chen, Ruiyuan & El Ghoul, Sadok & Guedhami, Omrane & Wang, He, 2017. "Do state and foreign ownership affect investment efficiency? Evidence from privatizations," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 408-421.
    6. Fu, Shuke & Ge, Yingchen & Hao, Yu & Peng, Jiachao & Tian, Jiali, 2024. "Energy supply chain efficiency in the digital era: Evidence from China's listed companies," Energy Economics, Elsevier, vol. 134(C).
    7. Borisova, Ginka & Fotak, Veljko & Holland, Kateryna & Megginson, William L., 2015. "Government ownership and the cost of debt: Evidence from government investments in publicly traded firms," Journal of Financial Economics, Elsevier, vol. 118(1), pages 168-191.
    8. Xiaoming Peng & Yihao Li & Chengxin Guo & Liang Peng & Sijin Tan, 2023. "“Risk” or “Opportunity”? The High Sensitivity of Corporate Green Innovation to Environmental Policy Uncertainty: Evidence from China," Sustainability, MDPI, vol. 15(11), pages 1-18, June.
    9. Zhuoxi Yu & Yu Wu & Zhichuan Zhu, 2023. "Fiscal Decentralization, Environmental Regulation and High-Quality Economic Development," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    10. Wang, Weilong & Xiao, Deheng & Wang, Jianlong & Wu, Haitao, 2024. "The cost of pollution in the digital era: Impediments of air pollution on enterprise digital transformation," Energy Economics, Elsevier, vol. 134(C).
    11. Lijuan Xiao & Min Bai & Yafeng Qin & Lingyun Xiong & Lijuan Yang, 2021. "Financial Slack and Inefficient Investment Decisions in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 920-941, June.
    12. Jianqiao Huang & Yunsen Chen & Xin Dai & Xiaoran Ni, 2022. "Stock market liberalisation and corporate cash holdings: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1925-1955, April.
    13. Xiang, Junyi & Zhang, Hongxiang & Dang, Dingyu & Guan, Jing, 2023. "Involuntary political connections and private firms' tax avoidance," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    14. Niu, Yuhao & Wang, Sai & Wen, Wen & Li, Sifei, 2023. "Does digital transformation speed up dynamic capital structure adjustment? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    15. Mihaela Brindusa Tudose & Amalia Georgescu & Silvia Avasilcăi, 2023. "Global Analysis Regarding the Impact of Digital Transformation on Macroeconomic Outcomes," Sustainability, MDPI, vol. 15(5), pages 1-21, March.
    16. Xiaosan Zhang & Xiaojie Hu & Fang Wu, 2022. "Fiscal Decentralization, Taxation Efforts and Corporate Green Technology Innovation in China Based on Moderating and Heterogeneity Effects," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    17. Huang, Hua & Tao, Yunqing & Wang, Xueping & Feng, Chen & Ye, Yongwei, 2023. "Do board reforms in parent firms boost subsidiaries’ innovation?," Economic Modelling, Elsevier, vol. 125(C).
    18. Mingxiong Bi & Chencheng Wang & Dian Fu & Xun Tan & Shurong Yu & Junbai Pan & Kun Lv, 2022. "Chinese-Style Fiscal Decentralization, Ecological Attention of Government, and Regional Energy Intensity," Energies, MDPI, vol. 15(22), pages 1-28, November.
    19. Kong, Dongmin & Liu, Boyang & Zhu, Ling, 2023. "Stem CEOs and firm digitalization," Finance Research Letters, Elsevier, vol. 58(PC).
    20. Wang, Guiying & Lamadrid, Richel L. & Huang, Yu, 2024. "Digital transformation and enterprise outward foreign direct investment," Finance Research Letters, Elsevier, vol. 65(C).

    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:gam:jsusta:v:15:y:2023:i:8:p:6838-:d:1126665. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.