Title: Does digitalisation policy really help with corporate CE? Evidence from Chinese manufacturing companies

Authors: Yalin Jiang; Wei Cai; Min Bai

Addresses: School of Social Audit, Nanjing Audit University, 86 Yushan West Road, Pukou District, Nanjing, 21185, China ' Nottingham University Business School China, University of Nottingham Ningbo China, 199 Taikang East Road, Yuzhou District, Ningbo, 315100, China ' School of Accounting, Finance and Economics, University of Waikato, New Zealand

Abstract: Greenhouse gases, such as carbon dioxide, are considered a major cause of global warming, and carbon emission reduction has become a vital agenda of the global community. Using data from Chinese manufacturing enterprises from 2011 to 2018, we examine the effects of digital finance on corporate CE. The results show that digital finance impedes corporate CE, but corporate environmental sensitivity could alleviate this inhibitory effect. This finding is robust to various tests, including the instrumental variable approach and difference-in-differences propensity score matching estimates (PSM-DID). Additional tests reveal that digital finance reduces companies' investment in tangible assets, lowering corporate CE. Our findings have significant policy implications for the impact of digital finance and promote an understanding of the relationship between digital finance and corporate CE reduction. The above results provide a valuable reference for COP26 policy discussions on addressing climate change.

Keywords: digital finance; corporate CE; environmental sensitivity; credit restrictions; tangible assets.

DOI: 10.1504/IER.2023.134977

Interdisciplinary Environmental Review, 2023 Vol.23 No.2, pp.120 - 145

Received: 28 Dec 2022
Accepted: 02 Apr 2023
Published online: 22 Nov 2023 *

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