Author(s)

Lusu Zhang ¹

Affiliation(s)

¹ Lanzhou University of Technology, Lanzhou, Gansu, China

Corresponding Author

Lusu Zhang

ABSTRACT

Merging digital frameworks with real-sector operations fundamentally drives enterprise growth. Yet, excessive digital investments may unintentionally suppress intrinsic innovation capabilities. This operational paradox continues to provoke significant scholarly dispute. We collected data from Chinese A-share listed firms spanning 2007 to 2022. Using this sample, we test how digital changes impact corporate green innovation. We specifically explore their non-linear pattern. We also check if financial limits change this dynamic. The data clearly shows an inverted U-shaped trend connecting digital efforts and green innovation; while initial digital investments reduce information asymmetry and boost innovation, excessive digitalization leads to resource crowding-out and human-machine mismatches, ultimately inhibiting green innovation output. Furthermore, financing constraints serve as a critical moderating mechanism. High financing constraints exacerbate the resource squeeze, weakening the early-stage promotion effect of digital transformation and accelerating the onset of its inhibitory effect. Ultimately, the findings yield practical takeaways, guiding companies to align their digital upgrade speeds with their actual funding capabilities. 

KEYWORDS

Digital transformation, Green innovation, Financing constraints

CITE THIS PAPER

Lusu Zhang. A Study on the Mechanism between Digital Transformation and Green Innovation under Financing Constraints. Accounting and Corporate Management (2026). Vol. 8, No. 1, 107-114. DOI: http://dx.doi.org/10.23977/acccm.2026.080114.

REFERENCES

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[4] Jiangtao Hong, Siyue Zhang. The Driving Mechanism of Manufacturing Digital Innovation from the Perspective of Affordance Theory. Studies in Science of Science, 2024, 42(02): 405-414.
[5] Liming Tang. Digital Transformation and Corporate Technological Innovation: The Formation Mechanism of the Inverted U-shaped Relationship and Its Verification. Modern Economic Research, 2022, (12): 91-102. 
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