Digital transformation and green total factor productivity of heavy pollution enterprises: Impact, mechanism and spillover effect.

Digital transformation offers considerable potential promoting corporate economic benefits as well as green performance. However, the effect and underlying mechanisms of digital transformation on green development levels of heavy pollution enterprises have yet to be fully clarified. We investigated the relationship between digital transformation and green total factor productivity using data from Chinese listed heavy pollution enterprises between 2011 and 2021. Results demonstrate that: (1) Digital transformation promotes green total factor productivity of heavy pollution enterprises. (2) This enhancement can be achieved through promoting green investment, improving management efficiency, and enhancing green innovation capabilities. (3) Environmental regulation positively moderates the relationship between digital transformation and green total factor productivity. (4) Digital transformation has a spillover effect on the green total factor productivity of upstream heavy pollution enterprises, while the impact on downstream enterprises is not significant. Targeted policy recommendations were proposed according to the research findings.