Page 140 - AJWEP-22-4

Wang, et al.

Table 5. Extreme temperatures and enterprise digital transformation: moderating effects
Explained (1) (2) (3) (4) (5) (6) (7)
variable: Digital
2
Extreme *TMTAge −0.003***
j, t
(0.001)
Extreme j, t −0.010**
*OverseaBack (0.005)
Extreme *FinBack 0.001
j, t
(0.004)
Extreme *Female −0.001
j, t
(0.002)
Extreme *Tan −0.018***
j, t
(0.006)
Extreme *ESG 0.022*
j, t
(0.012)
Extreme *DF 1.974***
j, t
(0.414)
Extreme Yes Yes Yes Yes Yes Yes Yes
j, t-1
Control variables Yes Yes Yes Yes Yes Yes Yes
Other climate Yes Yes Yes Yes Yes Yes Yes
variables
Industry-fixed effects Yes Yes Yes Yes Yes Yes Yes
Year-fixed effects Yes Yes Yes Yes Yes Yes Yes
Observations 12,908 12,908 12,908 12,908 12,908 12,908 12,908
R-squared 0.248 0.313 0.313 0.323 0.318 0.323 0.193

on the digital transformation of enterprises is more
obvious in the eastern region.

6.2. Executive team
Executive teams (TMTs) serve as the core decision-
makers driving corporate conduct, positioning them as a
pivotal force in organizational change and development.
The heterogeneity within TMTs substantially shapes
executive decision-making patterns. 44,45 As primary
architects of strategic design, execution, and adaptation,
TMTs critically influence the implementation of digital Figure 4. Heterogeneity analysis
transformation initiatives. Notably, variations in TMT
characteristics – including diversity in age, gender, (4) of Table 5 and Figure 5A and 5B. The coefficients of
educational attainment, and professional expertise – the interaction terms of the average age of executives,
fundamentally alter cognitive frameworks and strategic the percentage of executives with overseas experience
choices. This analysis selected variables such as and extreme temperatures are all significantly negative,
46
average age of executives (TMTAge), percentage of indicating that younger executive has a facilitating
female executives (Female), percentage of executives effect, while overseas study experience has a dampening
with overseas experience (OverseaBack), and effect. The proportion of female executives and the
percentage of executives with financial backgrounds proportion of executives with financial background do
(FinBack), and the results are shown in columns (1) to not play a role.

Volume 22 Issue 4 (2025) 132 doi: 10.36922/AJWEP025210166