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Leveraging big data for environmental sustainability: Evidence from China's green transformation initiatives
1School of Statistics and Data Science, Lanzhou University of Finance and Economics, Lanzhou, 730020, China; School of Accounting, Lanzhou University of Finance and Economics, Lanzhou, 730101, China.
Abstract:
This study delves into the impact and underlying mechanisms of big data development on corporate green transformation. Leveraging balanced panel data of A-share listed firms spanning from 2009 to 2021, we employ China's national big data comprehensive pilot zone policy as an exogenous shock to identify the causal effect of big data development on corporate green transformation. The results confirm that firms situated within the pilot zones exhibit significantly higher levels of green transformation. This effect is particularly pronounced among firms that are smaller, more specialized, sophisticated, distinctive, and innovative, as well as in industries characterized by high competition and capital intensity. Enhancing firms' Environmental, Social, and Governance (ESG) performance, bolstering their capacity for green collaborative innovation, and facilitating the advancement of industrial structures represent three viable pathways through which big data development can foster corporate green transformation. This study contributes new empirical evidence regarding the practical implications of big data development for corporate green transformation.
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