Abstract
With its “dual carbon” goals, Chinese firms are being challenged to improve both their environmental and economic performance. Previous research has found that digital transformation can foster the development of firms in various ways. Using a fixed-effects Poisson model, we examine China’s A-share listed firms from 2009 to 2022 to elucidate the relationship between digital transformations and green innovation. The results show that digital transformation significantly promotes firms’ green transformations. Moreover, digital transformation affects green innovations by attracting media attention, increasing analyst coverage, and reducing firms’ rent-seeking behavior. The study further demonstrates that institutional investors and comprehensive green information disclosure can augment digital transformations’ positive effects on green innovation.
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