The Impact of Digital Transformation on Corporate ESG - Evidence Based on Chinese A-share Listed Companies

Abstract

With the gradual development of the digital economy, improving ESG performance through digital transformation has become a new focus for enterprises. This paper focuses on the impact of enterprise digital transformation on ESG performance. Based on the panel data of China's A-share listed companies from 2013 to 2022, this paper empirically examines the impact of digital transformation on ESG performance by using A two-way fixed-effect model and adding time-fixed effects and individual-fixed effects. The study found that digital transformation can help improve ESG performance. Heterogeneity analysis show that the development of digital finance can significantly promote the development of enterprises in the eastern and central regions, while the impact on enterprises in the western region is not obvious. From the perspective of enterprise ownership, digital finance has a more significant improvement in the ESG performance of non-state-owned enterprises. This paper has the policy and practical significance for Chinese enterprises to carry out green transformation and realize the goal of "dual carbon" under the background of the digital economy. Companies can apply environmental protection, social responsibility, and corporate governance considerations to their operations by increasing investment in technology research and development.