A Study on the Impact of Corporate Governance Levels on Enterprises' Green Transformation

Abstract

Corporate governance serves as a critical factor in incentivizing and ensuring enterprises proactively pursue green transformation. Against this backdrop, this study incorporates labor structure optimization into its research model using data from Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2012 to 2023. It systematically examines the causal mechanism linking corporate governance levels to enterprise green transformation. Findings indicate that corporate governance levels significantly promote green transformation, a conclusion that remains robust after a series of stability tests. Heterogeneity analysis reveals that the promotional effect of corporate governance on green development is more pronounced for state-owned enterprises, high-tech firms, and companies with low financing constraints. In terms of transmission mechanisms, corporate governance drives green transformation by optimizing both the quality and functional structure of the workforce. This study not only sheds light on the drivers of recent trends in corporate human capital levels but also holds significant implications for promoting the sustained and stable development of corporate green transformation.