Can China go green through digitalization? Evidence from China's listed firms

This paper employs textual analysis of China's listed firms in 2007-2022 to investigate the influence of corporate digitalization on corporate green innovation. Utilizing the frequency of digital-related terms as an indicator of corporate digitalization degree, we find that: First, corporate digitalization has a positive impact on green innovation, which has been confirmed by several robustness tests. Second, this positive impact is heterogeneous in different digitalization types and different green innovation types. Third, environmental disclosure, absorptive capacity, and internal control are three main mechanisms. These findings can offer insights into the coordinated development of digitalization and green transition in emerging markets.