Green Innovation and Corporate Green Transformation: Evidence from Text Mining of Annual Reports

Taking listed firms from 2010 to 2023 as research samples, we measure the degree of corporate green transformation by extracting keywords from annual reports based on text mining and empirically examining green innovation's impact on corporate green transformation. The results show that green innovation can improve corporate green transformation. The moderating mechanism analysis demonstrates that when the degree of market competition increases, the relationship between green innovation and corporate green transformation is stronger. In addition, the relationship between them is more significant in areas with low degree of intellectual property protection, and the moderating effect of market competition is further enhanced. Finally, heterogeneity test shows that the positive impact of green innovation on corporate green transformation for non-state-owned firms and firms in heavily polluting industries is more significant.