Analyzing the Impact of Inclusive Digital Finance on Green Innovation: The Moderating Role of Accounting Information Quality Using the Grey Relational Analysis Approach

Introduction

In today's world, the expansion of inclusive digital finance has been recognized as an important tool for reducing economic and social inequalities, facilitating access to financial services for disadvantaged groups, and advancing sustainable development goals. By utilizing new technologies such as artificial intelligence, blockchain, and the Internet of Things, this concept facilitates the equitable distribution of financial resources and acts as a driver for green innovation that simultaneously improves economic performance, reduces environmental pollution, and increases resource efficiency. Green innovation, as a fundamental pillar for achieving the goals of carbon peaking and carbon neutrality, requires coordination between financial policies, digital infrastructure, and governance mechanisms. By reducing transaction costs and improving access to financial services, especially in less developed areas, inclusive digital finance strengthens this coordination and promotes the development of high-quality public services.

As a determinant, the quality of accounting information plays an important moderating role in enhancing the effects of inclusive digital finance on green innovation. By improving financial transparency and reducing information asymmetry, it provides a favorable environment for the implementation of green initiatives such as renewable energy, sustainable agriculture, and environmental technologies. For example, by reducing financial constraints and increasing access to resources, inclusive digital finance fosters green entrepreneurship and related innovations, which leads to a reduction in carbon intensity, but this effect is greater when the quality of accounting information is high. Also, this financial instrument enhances green innovation in manufacturing sectors by supporting the promotion of the global value chain of advanced industries and digitalization. On the other hand, accounting information quality increases financial transparency and reduces earnings management by creating competition and peer pressure, which strengthens green innovation-related decision-making.

This paper presents a framework based on gray relationship analysis to analyze the effects of pervasive digital finance on green innovation, focusing on the moderating role of accounting information quality. The innovation of this research is notable in several areas: (1) applying gray relationship analysis to model uncertainties in real data, (2) investigating the moderating role of accounting information quality as an effective factor in enhancing the effects of digital finance, and (3) analyzing the simultaneous effect of accounting information quality on the relationship between digital finance and green innovation. This framework not only helps to better understand the underlying mechanisms of these relationships, but also provides a practical tool for policymakers and managers to design targeted strategies.

In the following, this paper reviews the literature, describes the research methodology, analyzes the results, and draws conclusions. The literature review section covers the theoretical foundations of inclusive digital finance, green innovation, and the moderating role of accounting information quality. The methodology section provides details of the gray relationship analysis approach and its implementation steps. The results section discusses the empirical findings in the form of multilevel analyses and different scenarios. The conclusion section suggests policy solutions, research limitations, and future directions for future research.

Materials and Methods

This study uses gray relationship analysis, which is suitable for limited or incomplete data, to investigate the impact of inclusive digital finance on green innovation and the moderating role of accounting information quality. A mixed (purposive and stratified random) sampling was conducted from companies active in the fields of FinTech, renewable energy, and sustainable agriculture in Iran. Data were collected through a three-part questionnaire (inclusive digital finance, green innovation, and accounting information quality) with high content validity and reliability (Cronbach's alpha 0.84 to 0.89). After data normalization, the gray correlation coefficient and degree were calculated, and to examine the moderating role, companies were classified based on accounting information quality. Finally, using Python software, the relationships between variables and the moderating role of accounting information quality were analyzed.

Findings

First, the results show a strong and positive correlation (0.78) between inclusive digital finance and green innovation, which is above the significance threshold of 0.6. This finding, which is also consistent with previous research, suggests that digital finance enhances green innovation by reducing transaction costs (such as a 20-30% reduction in green loans) and directing resources towards clean technologies. To optimize this relationship, it is suggested that policymakers implement digital training programs for small companies with a budget of about 10 billion Tomans for infrastructure, so that the correlation reaches above 0.85.

Next, examining the moderating role of accounting information quality showed that this factor has a significant impact on the relationship between digital finance and green innovation. In companies with high accounting information quality, the correlation increased to 0.89, indicating a 14% strengthening of the relationship. This is due to reduced information asymmetry and increased investor confidence. In contrast, low quality of accounting information led to a 21% decrease in the correlation (to 0.62), which could be due to increased investment risks resulting from earnings management. The ANOVA test (with F=12.34 and p=0.001) also confirmed statistically significant differences between these groups and showed that high accounting quality facilitates green decision-making by 25%. For improvement, it is suggested that companies implement digital accounting systems (such as green ERP) and consider 15% tax incentives for them, and that the Stock Exchange Organization also requires financial-environmental reporting to increase green innovation by 20-30% and reduce the effects of sanctions.

Discussion and Conclusion

This study confirms the positive and significant impact of inclusive digital finance on green innovation by analyzing gray relations in Iranian companies active in the fields of fintech, renewable energy, and sustainable agriculture. This effect is achieved through reduced transaction costs, increased access to green loans, and improved resource allocation using digital platforms, which demonstrates the high potential of digital finance in directing resources towards clean technologies in Iran. In addition, accounting information quality also acts as a critical moderating factor; such that high information quality strengthens the relationship between digital finance and green innovation, and low quality weakens it. These results emphasize the importance of financial transparency and reducing information asymmetry in green innovation-related decision-making, and the significant differences between different accounting information quality groups also highlight the importance of this variable.