Does the limelight foster the green transition of listed industrial companies? An empirical analysis from Chinese A-share market.

This paper contributes current research by investigating the extent to which equity linkage networks impact enterprise green transition in sustainable development. By adopting a complex network approach, we constructed a common shareholding network based on the top ten shareholders of listed industrial enterprises in Shanghai and Shenzhen A-shares from 2013 to 2022. The empirical results indicate that enterprises closer to the centre of the equity linkage network tend to have higher degrees of green transition. This impact is facilitated through three mechanism channels of capital flow, information exchange, and knowledge transfer within the network. We find enterprises at the core of the network can effectively reduce their financing constraints on enterprises, mitigate risks associated with external environmental uncertainties and managerial myopia, and promote knowledge exchange and innovation cooperation between enterprises. We have also discovered that the centrality of equity network has a greater impact on promoting transition in state-owned, large-scale enterprises, and enterprises with less heavy pollution and the network effect can be enhanced by strong regional environmental regulations. The above findings not only provide policy makers with policy recommendations to guide the enterprises green transition, but also provide industry practitioners with practical paths and directions, which can help promote the green development process of the whole society.