Research on the Effect and Mechanism of Digital Transformation on The Green Total Factor Productivity of Enterprises

This paper investigates the impact of digital transformation on firms' green total factor productivity (GTFP) and its mechanism. Based on the data of Chinese A-share listed companies in Shanghai and Shenzhen from 2007 to 2022, this paper finds through empirical model analysis that digital transformation has a positive contribution to corporate green total factor productivity. The findings show that digital transformation significantly enhances firms' green total factor productivity, and this conclusion remains robust after considering endogeneity issues. In addition, this paper finds that equity concentration has a negative moderating effect on the relationship between digital transformation and green total factor productivity, suggesting that excessive equity concentration may be detrimental to the enhancement of firms' green productivity. Based on the findings, this paper proposes that the government should formulate supportive policies, strengthen policy guidance and improve regulatory mechanisms to promote the synergistic promotion of digital transformation and green development of enterprises. The findings provide theoretical support and practical guidance for enterprises to achieve green sustainable development in the process of digital transformation.