Digital Transformation, Disclosure Quality, and Green Innovation: What Does Board Independence Matter?

Abstract

Environmental issues emerge due to rapid economic growth, and the Chinese government responds to these issues by issuing environmental regulations and providing environmental subsidies. In this case, corporations are under increasing pressure to change their production and operation models. Based on this background, corporations need to integrate sustainable practices into their operations, such as developing green innovation. In addition, digital transformation has been recognized by corporations as a critical development direction. This is at-tributed to the fact that digital technologies provide advanced tools and systems for monitoring, reporting, and optimizing operations. These capabilities may improve the operational efficiency of corporations, increase data transparency, and improve disclosure quality, which appears to affect the development of green innovation. This research uses the data of Chinese corporations to explore the impact of digital transformation on green innovation, analyzes disclosure quality as a mediating mechanism, and emphasizes the role of board independence.