Abstract
In this paper, we select A-listed companies from 2011 to 2020 to conduct theoretical analysis and empirical research on the mechanism of action between the digital transformation of firms and green innovation. One of the key findings of this study is that digital transformation can significantly promote green business innovation, and the conclusion still holds after a series of robustness tests. Through an analysis of the mechanism of action, it is found that digital transformation can enhance green innovation by promoting the quality of firms' internal control. Upon closer inspection, it was found that the higher the level of disclosure of corporate environmental information, the more evident the promotive effect of digital transformation on green innovation. The results of the research provide suggestions for companies to improve their green innovation capabilities and promote green transformation.
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