Supply Chain Digitization and Corporate Carbon Disclosure

ABSTRACT In this study, the effects of supply chain digitization (SCD) on corporate carbon disclosure within the framework of transaction cost and institutional isomorphism theory are examined. We show that SCD improves corporate carbon disclosure level (i.e., width, depth and breadth). The pivotal mechanism is reduced transaction costs, which are achieved through reducing information asymmetry, increasing risk‐taking capacity and facilitating upstream and downstream collaboration. The effect is pronounced for non‐SOEs, firms with stronger levels of supplier competition, and firms with higher levels of customer dependence. Our study innovatively incorporates breadth, depth and width into the carbon disclosure level and highlights the role of SCD in facilitating carbon management along the supply chain.