With the recent technological advancements, such as the internet, big data, and cloud computing, China’s digital economy plays a significant role in economic development. However, the digital economy may also affect the environmental quality, but the prevailing literature is scant on how the digital economy affects urban environmental pollution. To fill this gap, this study established an urban digital economy index system based on 277 prefecture-level cities in China and calculated their digital economy indicators from 2011 to 2019. Using a two-way fixed effects model, a mediation effect model and a moderation effect model, a multi-dimensional empirical test is conducted to determine the impact of the digital economy on urban pollution effects and internal mechanisms. Empirical results indicate that the digital economy significantly reduces urban pollutant emissions and shows spatial heterogeneity. After a series of robustness tests and endogenous analysis, our findings are consistent. The mechanism test results reveal that the digital economy can help mitigate pollution emissions through improved industrial structure, promotion of green innovation, and financial development. Further, the empirical results also demonstrate that government intervention can significantly enhance the negative environmental impact of the digital economy. Moreover, the findings from the heterogeneity test (i.e., city size, time, and space heterogeneity) show that the development of the digital economy is more significant in reducing urban pollution in large and eastern coastal cities. While the digital economy development policy impact of the digital economy on reducing pollution has been found after being adjusted by the national strategy. Our study enriches the research regarding the causes and mechanisms of environmental pollution, provides empirical evidence that the digital economy contributes to pollution control and provides decision-making references for enabling the growth of the digital economy and maximizing its pollution reduction power.

Purpose: Based on resource-based theory and intellectual capital theory, this paper aims to investigate the impact of digital investment on enterprise value and the mediating role of intellectual capital. Additionally, it explores the heterogeneous impacts of digital investment on enterprise value and intellectual capital.Design/methodology/approach: The study utilizes a sample of listed companies in Chinese A-shares from 2013 to 2020. The entropy-weighted method is applied to measure digital investment from two dimensions: scale and increment. Finally, the research hypotheses are tested through multiple regression analysis.Findings: The empirical results demonstrate that digital investment significantly and positively impacts enterprise value. From the channel mechanism test, digital investment can enhance enterprise value by influencing intellectual capital through human, structural and relational capital. Of these, the mediating effect of human capital is the most significant. Moreover, the impacts of digital investment on enterprise value and intellectual capital are related to the industry sectors. In the agricultural sector, digital investment has adverse effects. In the industrial and service sectors, digital investment promotes intellectual capital and enterprise value. However, in the service sector, the impact on relational capital is not significant, and the mediating effect of relational capital does not hold.Research limitations/implications: This research has a limited potential for generalization due to the lack of standard measurement models for the exploration of digital investment.Practical implications: The research findings are valuable for assessing the economic effects of digital investment comprehensively and providing essential information for policy formulation and strategy implementation.Originality/value: This study represents the first attempt to evaluate the relationship between digital investment and enterprise value using the entropy-weighted method. In addition, this study investigates the mediating role of intellectual capital.

In the context of the digital economy, the external connection of executives provides enterprises with a good idea to amplify their potential for digital transformation with the help of external forces. Therefore, we conduct a theoretical exploration and an empirical analysis of the relationship between executive connections and enterprise digital transformation. As the research sample, we use the A-share manufacturing companies listed in China from 2012 to 2021. According to sufficient verifications, we discover that executive connections can effectively support digital transformation. From the perspective of each subdivision dimension, executive business connections, executive technical connections, and executive financial connections can significantly promote digital transformation, among which executive technical connections have the greatest favorable impact. However, the impact of executive political connections on digital transformation is not obvious. Additionally, executive connections primarily foster enterprise digital transformation by reducing enterprise asset specificity. The results of the boundary mechanism test demonstrate that the external environmental dynamics and the internal dynamic capabilities reinforce the positive effect of executive connections on digital transformation. These findings contribute to a deeper understanding of the role of executive connections in digital transformation and provide practical guidance for firms to accelerate digital transformation.