Corporate Digital Transformation and ESG Performance - Evidence from Chinese-Listed Companies

Abstract

Corporate digital transformation provides the endogenous motivation to stimulate corporate ESG performance by helping companies to optimize innovation resource allocation and reduce financing costs. This paper empirically examines the impact and mechanism of corporate digital transformation on corporate ESG performance using Shanghai, and Shenzhen A-share listed companies from 2011-2021 as the research sample. It is found that digital transformation significantly enhances the ESG performance of enterprises, among which the performance of artificial intelligence is more prominent. This finding still holds after a series of robustness tests and endogeneity treatments. Taking the social spillover effects of digital transformation as the starting point, this paper provides empirical evidence and research insights to broaden the development path of Chinese enterprises to improve ESG performance and implement the "double carbon" goal.