The Promoting Effect of Enterprise Digital Transformation on Green Innovation：A Perspective of Corporate Governance

As digital technology advances, the digital economy has profoundly reshaped industrial ecosystems and transformed the broader economic landscape. The digital transformation of enterprises represents a microcosm of this shift and is a critical area of study, particularly in terms of its potential to drive green innovation. This paper uses data from Chinese A share listed companies from 2012 to 2022 to examine the impact and underlying mechanisms of enterprise digital transformation on green innovation. Additionally, it investigates the effects of digital transformation on both substantive and strategic green innovations. Using textual analysis, the study constructs a measure of digital transformation and conducts an empirical analysis to assess its influence on green innovation. The findings are as follows: First, enterprise digital transformation has a significant positive impact on green innovation, with a stronger effect observed on substantive innovation compared to strategic innovation. This conclusion remains robust after performing several robustness checks. Second, through a heterogeneity analysis, the study reveals regional and industrial differences. Specifically, the effect of digital transformation on green innovation is more pronounced in the eastern and western regions compared to the central region, and it remains significant regardless of whether the enterprise operates in a high-pollution industry. Third, the study confirms that corporate governance mechanisms play a key role. Empirical results show that digital transformation promotes green innovation by enhancing corporate governance practices. These findings contribute to the understanding of how enterprise digital transformation can promote green innovation, offering empirical evidence for better facilitating a green and low-carbon transition in enterprises.