The Impact of Enterprise Digitization on Green Total Factor Productivity: A Case Study of High-Polluting Companies in China

As an integral part of the digital economy era, the digital transformation of businesses can have a certain impact on their green total factor productivity, but causal identification of this impact remains limited. To address these shortcomings, this study selects 20 categories of heavily polluting enterprises based on the industry classification standards of the China Securities Regulatory Commission in 2012. Using listed company data from 2015 to 2019 and combining the global Malmquist-Luenberger productivity index, the study employs the Slacks Based Measure-Directional Distance Function model to assess the relationship between digitalization and green total factor productivity of enterprises. The research findings are as follows: 1) The promotion of digital transformation by businesses can significantly facilitate the improvement of green total factor productivity. 2) The results of the mediation effect test indicate that advanced digital technologies can enhance green total factor productivity by optimizing the internal financial conditions of enterprises. 3) Model construction demonstrates that market competition and investor sentiment play a moderating role in green total factor productivity. 4) Threshold regression analysis confirms that higher managerial capabilities enable the better digital transformation of enterprises, leading to higher green total factor productivity. Finally, from the perspective of enterprises themselves, this study proposes strategies to promote green total factor productivity and sustainable development. It expands the existing literature and evidence on the impact of digitalization on green total factor productivity while providing recommendations for businesses striving to achieve sustainable development.