In the context of the growing digital economy and China's push to build a market-oriented green technology innovation system, it is crucial to study whether digital transformation can promote enterprise green technology innovation for China's economic transformation and high-quality development. This paper empirically examines the impact of digital transformation on corporate green technology innovation using data from A-share listed companies in China from 2007-2019 as a research sample. The study finds that digital transformation can significantly promote corporate green technology innovation and the findings still hold after a series of robustness tests. The mechanism analysis shows that digital transformation promotes green technology innovation by reducing information asymmetry and improving the quality of internal controls. Further analysis reveals that digital transformation promotes green substantive innovation more than green strategic innovation based on the quality of innovation. Moreover, digital transformation has a stronger incentive effect on high-tech enterprises to conduct green technology innovation. This paper reveals the microscopic mechanism of digital transformation to promote green technology innovation and expands the research on digital transformation and green technology innovation, which can provide useful reference for promoting green economic growth and achieving carbon peaking and carbon neutrality goals in China.
