Digital and Green Finance as Drivers of Enterprise Resilience to Climate Risk: Examining Their Mitigating Effects on Enterprise Development

Abstract

This study analysed the impact of digital finance and green finance on enterprise resilience and enterprise development in a climate-related uncertainty environment. The research method used in this study was quantitative. The research type adopted was design method and the data obtained were questionnaire-based data and five-point Likert scale data of 300 enterprises. Descriptive statistics, regression (Pearson correlation), and moderation analysis were used to analyse data. The results indicated that digital finance has significant positive influence on enterprise resilience (beta = 0.304, p < .001), and green finance also has significant positive effect on enterprise resilience (beta = 0.357, p < .001). A significant negative relationship existed between climate risk and enterprise development (β = -0.331, p < .001); enterprise resilience had a positive relationship with enterprise development (β = 0.408, p < .001). The regression model accounted for 55.9% of the variation in enterprise development (R² = .559). Moderation analysis results further showed that both the interaction between climate risk and digital finance (β = 0.147, p = .002) and the interaction between climate risk and green finance (β = 0.176, p < .001) were positive and significant. The results show that both digital finance and green finance can enhance the resilience of the enterprises and alleviate the negative effect of climate risk on enterprise development. The study brings together finance innovation, sustainable finance, resilience and enterprise development, thereby enriching the climate-finance literature.

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