Can enterprise digital transformation improve ESG performance?

Liu, Ziming; Chen, Zhao; Hu, Ling

doi:10.1002/mde.4307

Manage Decis Econ

2024

DOI: 10.1002/mde.4307

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Can enterprise digital transformation improve ESG performance?

Ziming Liu,

Zhao Chen,

Ling Hu

Abstract: Regarding China's A‐share‐listed companies as research samples, we construct an empirical model to test the impact of corporate digital transformation on ESG performance. We find that a corporate digital transformation improves its ESG performance. Moreover, the higher the quality of environmental information and the efficiency of external resource allocation, the greater the role of digital transformation on ESG performance. Finally, the ESG performance ameliorates the financing and green performance of enter… Show more

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2024

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Cited by 3 publications

References 52 publications

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Does banking relationships promote environmental, social, and governance performance? Empirical evidence from A‐share listed firms in China

Wang,

Zhao,

Gong

2024

Manage Decis Econ

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This study investigates the impact of banking relationships on corporate environmental, social, and governance (ESG) performance using data from A‐share listed firms in China from 2009 to 2019. Results show that banking relationships negatively impact corporate ESG performance. Mechanism analysis finds that banking relationships increase agency costs and financial investment, thereby diminishing ESG performance. Corporate executives with banking backgrounds and banks holding firm shares dampen ESG performance, whereas firms holding bank shares do not yield significant impact on ESG performance. Our study also finds that the negative impact of banking relationships on ESG performance is mitigated by analyst attention and supervisory institutional investors.

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Does banking relationships promote environmental, social, and governance performance? Empirical evidence from A‐share listed firms in China

Wang,

Zhao,

Gong

2024

Manage Decis Econ

View full text Add to dashboard Cite

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Shifting Proactive or Keeping Silent: How Does Environmental Legislation Enhance Companies' ESG Performance?

Huang,

Ao,

et al. 2024

Manage Decis Econ

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By integrating the behavioral theory of firms with institutional theory, this study examines the causal impact of environmental legislation on corporate ESG performance through a quasi‐natural experiment involving the implementation of the China's New Environmental Protection Law (NEPL). Utilizing data on Chinese listed companies from 2010 to 2021 and employing a difference‐in‐differences model, our findings reveal that the NEPL significantly boosts ESG performance, with improvements increasing over time. Our mechanism analysis indicates that this enhancement is primarily driven by the improved quality of environmental information disclosure, suggesting proactive disclosure under stringent environmental legislation. Further heterogeneity analysis reveals complementary effects from private attribute, institutional shareholdings, and public media attention. This paper opens the “black box” of how environmental legislation influences corporate ESG performance from the perspective of strategic company disclosure, highlighting the critical role of proactive information disclosure in navigating complex external environments.

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Corporate performance: green supply chain management, digital transformation and carbon neutrality

Chen,

Guo

2024

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PurposeThis study examines the interdependent relationships between green supply chain management (GSCM), carbon neutrality capability (CNC), digital transformation (DT) and firm performance (FP) among enterprises listed on the Chinese stock market. The primary objective is to provide a scholarly examination that may help these organisations to enhance their GSCM practices significantly.Design/methodology/approachDrawing on data from mainland Chinese publicly listed firms over the period from 2014 to 2021, this study posits and methodically evaluates four hypotheses: (1) GSCM practices are positively associated with an increase in CNC; (2) GSCM practices have a beneficial impact on FP; (3) DT moderates the GSCM–FP relationship and (4) CNC mediates the effect of GSCM on FP.FindingsContrary to initial assumptions, the findings suggest that GSCM practices may initially have a negative impact on FP. However, a concerted focus on CNC has the potential to convert this negative trajectory into a positive influence on FP. The findings further identify that DT has a significant moderating effect on the GSCM–FP relationship.Originality/valueThe findings of this study enrich the academic discourse concerning the symbiotic effects of GSCM, CNC and DT on FP. By systematically analysing these dynamics, the study underscores the critical importance of CNC and DT in the successful application of GSCM practices, thus offering valuable contributions to the literature on sustainable corporate operations.

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Can enterprise digital transformation improve ESG performance?

Cited by 3 publications

References 52 publications

Does banking relationships promote environmental, social, and governance performance? Empirical evidence from A‐share listed firms in China

Does banking relationships promote environmental, social, and governance performance? Empirical evidence from A‐share listed firms in China

Shifting Proactive or Keeping Silent: How Does Environmental Legislation Enhance Companies' ESG Performance?

Corporate performance: green supply chain management, digital transformation and carbon neutrality

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