Corporate Digital Transformation and Environmental Performance: Evidence from the People’s Republic of China

Yan Luo, Shula Wu and Shu Tian
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Yan Luo: Fudan University
Shula Wu: Fudan University
Shu Tian: Asian Development Bank

No 853, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This paper examines the impact of corporate digital transformation on environmental performance and the underlying mechanisms. Utilizing textual analysis of annual reports, we develop a fourdimensional measure of digital transformation comprising technological, business, manufacturing, and operational aspects. Analyzing data from Chinese A-share listed firms between 2009 and 2022, we demonstrate that corporate digital transformation significantly enhances environmental performance. While all dimensions of digital transformation contribute positively, manufacturing digital transformation exhibits the most substantial impact, followed by operational and technological digital transformation. We identify that green innovation, strengthened environmental monitoring and communication, increased environmental information transparency, and greater external attention are pivotal mechanisms through which digital transformation affects environmental performance, with transparency emerging as the strongest factor in this context. This paper offers new insights into the role of digital transformation in advancing sustainability.

Keywords: corporate digital transformation; environmental performance; textual analysis; nnovation; transparency (search for similar items in EconPapers)
JEL-codes: D22 O33 Q56 (search for similar items in EconPapers)
Pages: 46
Date: 2026-06-29
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:023024

DOI: 10.22617/WPS260286-2

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