Abstract: Although existing studies have extensively explored corporate digitalization and green transformation, systematic research on how firms, under capital market pressure, leverage digital capabilities to balance short-term financial goals with sustained green innovation remains scarce. Drawing on dynamic capability theory, we empirically analyze the impact of merger and acquisition (M&A) performance commitments on the sustained green innovation of manufacturing firms, with a particular focus on the moderating role of data assets. Based on panel data from Chinese A-share listed manufacturing firms from 2010 to 2024, we find that M&A performance commitments significantly inhibit the sustained green innovation of manufacturing firms by increasing performance pressure, intensifying managerial myopia, and raising agency costs. Data assets play a negative moderating role in the relationship between M&A performance commitments and sustained green innovation, effectively mitigating the adverse effects of such commitments. By improving resource allocation efficiency, correcting strategic decision biases, and strengthening organizational governance mechanisms, data assets alleviate the resource crowding-out effect caused by short-term capital market orientation. The findings enrich the literature on the relationship between capital market pressure and green innovation, enrich the theoretical connotations of data assets empowering corporate dynamic capabilities, and underscore the necessity for firms to develop and apply data assets to promote the sustained green innovation in uncertain environments. This study offers new theoretical perspectives and practical insights for optimizing resource allocation and advancing green and low-carbon transformation of manufacturing firms.

Key words: M&A performance commitments, data assets, sustained green innovation, dynamic capability