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Corporate green investment is a new possibility that may overcome environmental challenges and other economic concerns. The excessive use of industrial gases and chemicals concerns all authorities. Conversely, the traditional economy has rapidly transformed into a digital economy, particularly in China. The digital financing system in China edifies a new face of the industry and economy that stimulates company social action. This study unfolds the three critical aspects of digital finance that pertain to corporate green investments in highly polluting companies. After a series of econometric tests, the research demonstrated how companies can be persuaded to make green investments using digital financing. It emphasised how institutional investors support corporate green investments and act as moderators to strengthen the relationship between digital finance and corporate green investment. Furthermore, it unveiled the critical function of environmental regulations for green investment improvement and the reason for positivity among digital financing and company green investment. With the heterogeneity test, the study segregated state-owned and non-state-owned firms. It discovered that state-owned businesses use the digital finance function more than non-state-owned businesses. This weak connection can be vital for non-state-owned firms through institutional investors and environmental regulations as moderators. Therefore, a fresh viewpoint in the digital age can encourage policymakers to improve corporate social action and promote a green economy. • The improvement of corporate green investment through digital finance has been discussed. • Institutional investors and environmental regulations are found to be powerful tools for the promotion of green investment. • Institutional investors and environmental regulations are also found to be effective apparatus that stimulate connections amid digital finance and firm green investment. • Heterogeneity analysis reveals the positive connection of the moderators for relationship between digital finance and company green investment in non-state-owned firms even.. [ABSTRACT FROM AUTHOR]

At present, many economies are suffering from environmental problems that have significant effects on the climate and life of human beings, thus, the governments and institutions work to reduce the industrial negative effects on the environment. Based on the Porter Hypothesis, agency theory, and management and organization theory, this study examines the connection between environmental regulations, corporate social responsibility and firm innovation with the moderating role of CEO power and ownership concentration. Importantly, this study divided CEOs into male and female CEO. This study classifies firm innovation into two kinds, such as firm input innovation and firm output innovation. This study selects the sample of Pakistani manufacturing firms and uses the panel data for the period 2008 to 2018. For the analysis purpose, this study employs ordinary least squares (OLS), fixed-effect (FE) model, generalized method of moments (GMM). For more robust results, this study employs the feasible generalized least square (FGLS) model. Based on the findings from the empirical analysis, this study concludes that environmental regulations and corporate social responsibility have a positive relationship with firm innovation (Input and Output). Moreover, a powerful CEO and ownership concentration are valuable for firm innovation (Input and Output), because these factors are positively connected with firm innovation (Input and Output). Majorly, this study contends that environmental regulations and corporate social responsibility are positively connected with firm innovation (Input and Output) because of the interactive role of CEO power. This study supported the role of both male and female CEOs for firm innovative practices. Therefore, firms of developing economies should also consider the female CEO. Besides, environmental regulations and corporate social responsibility also positively connected with firm innovation (Input and Output) because of the interactive role of ownership concentration. Moreover, this study offers various policy implications for governments and policymakers. • This study examines the moderating role of CEO power and ownership concentration in environmental regulations, CSR and firm innovation. • This study uses data of Pakistani firms from 2008 to 2018, and analyze it by employing OLS, fixed-effect (FE) model, GMM model and FGLS models. • This study concludes that environmental regulations and CSR are positively associated with firm innovation. • This study endorses positive connection of environmental regulations, CSR and firm innovation with CEO power and ownership concentration. [ABSTRACT FROM AUTHOR]