Digital transformation, carbon performance and financial performance: empirical evidence from the Chinese stock market

Ziqiang Tong (), Buxi Li and Lei Yang
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Ziqiang Tong: Shanxi University
Buxi Li: Shanxi University
Lei Yang: Chang’an University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 7, No 81, 17129-17146

Abstract: Abstract Digitization has become an engine to promote industrial transformation and social change, providing great potential for carbon emission reduction in the world. At present, there is still a lack of sufficient discussion on whether digital transformation can further improve micro-enterprises’ performance in carbon performance and financial performance improvement. Therefore, this paper constructs the index of enterprise digital transformation with the help of Word2Vec technology and theoretically analyzes and empirically tests the relationship among enterprise digital transformation, carbon performance and financial performance. The study found that digital transformation can remarkably improve corporate carbon performance, and the relationship between corporate carbon performance and financial performance is positive. Furthermore, this paper further discusses the role of digital transformation in the relationship between corporate carbon performance and financial performance. The results show that digital transformation can promote the enhancement effect of carbon performance on financial performance. The conclusions of this paper provide a clear inspiration for enterprises and governments to promote digital transformation and realize the “win–win” goal of carbon emission reduction and profit maximization.

Keywords: Digital transformation; Carbon performance; Financial performance; Carbon emission reduction; Text analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-024-04564-y

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