Impact of digital transformation on performance of environment, social, and governance: Empirical evidence from China

Wang, Quan‐Jing; Wang, Hai‐Jie; Guo, Feng; Chang, Chun‐Ping

doi:10.1111/beer.12573

Cited by 39 publications

(1 citation statement)

References 68 publications

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“…The key enterprise elements influencing green innovation, according to the literature currently available, are R&D investment, trade openness, and human capital (Wen et al, 2022). Environment, society, and governance (ESG) performance, as a comprehensive index for multi-dimensional evaluation of enterprise management sustainability, plays an important role in green innovation that cannot be ignored (Wang et al, 2023). ESG is a significant standard that the global society uses to assess how sustainable an organization is.…”

Section: Introductionmentioning

confidence: 99%

Does ESG performance bring to enterprises’ green innovation? Yes, evidence from 118 countries

Fu,

Zhao,

Chang

2023

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Research background: The sustainable development and innovation economics theory and related literature place a lot of emphasis on the relationship between environment, society, and governance (ESG) and green innovation. Purpose of the article: The purpose of this paper is to understand what the factors are that influence green innovation and why there is a big disparity in green innovation capabilities between nations. In addition, this paper aims to investigate the impact of ESG performance of green innovation by using unbalanced panel data covering 118 sample countries during the period of 1999–2019. Methods: Panel fixed effect model; Instrumental variable (IV) method; First-differencing (FD) method; Kinky least-squares (KLS) approach. Findings & value added: ESG performance provides evidence for its positive and significant impact on such innovation. Among the ESG factors, governance seems to have the most important influence on green innovation. Moreover, the positive influence of ESG performance is more evident in higher income and wealthy nations. Furthermore, we also conclude that ESG performance can affect green innovation through FDI, human capital, financial development and trade openness. These conclusions hold up after a number of robustness tests and taking into account any potential endogenous issues. Overall, policymakers should pay close attention to the findings.

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Section: Introductionmentioning

confidence: 99%

Does ESG performance bring to enterprises’ green innovation? Yes, evidence from 118 countries

Fu,

Zhao,

Chang

2023

Self Cite

View full text Add to dashboard Cite

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Digital technology innovation and corporate environmental, social, and governance performance: Evidence from a sample of listed firms in China

Feng,

Nie

2024

Corp Soc Responsibility Env

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Corporate environmental, social, and governance (ESG) performance is gaining significance in global sustainable development. Corporations can improve ESG performance through digital technology innovation (DTI). However, few studies systematically examined the relationship between DTI and ESG performance. This study uses digital technology patent application data as a proxy for DTI to provide empirical evidence. Analysis of Chinese A‐share firms from 2009 to 2021 shows that DTI significantly improves ESG performance, particularly for small‐sized and non‐state‐owned firms. Mediation analysis indicates that DTI promotes ESG performance by increasing internal control quality and human capital. Institutional environment and government digital attention optimization enhances DTI's promotion effect on ESG performance. Firms with advanced digital transformation can better improve ESG performance through DTI. The findings expand the theoretical understanding of DTI's role in corporate sustainability and provide practical insights into how managers can leverage DTI opportunities to strengthen ESG performance.

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Digital transformation, environmental regulation and enterprises' ESG performance: Evidence from China

Wang

2024

Corp Soc Responsibility Env

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Company's digital transformation and Environmental, social, and governance (ESG) performance are crucial for their development, but there is little literature that considers whether and how digital transformation improve ESG performance, the impact of environmental regulations is also easily overlooked, we attempt to fill this gap. Based on data related to Chinese listed enterprises from 2011 to 2020, we focus on the internal digital transformation of enterprises, analyze and empirically test the direct and mediating influence of digital transformation on enterprises' ESG performance, as well as the moderating effect of external environmental regulations. The results show that digital transformation improves ESG performance. Heterogeneity analysis found that digital transformation had different impacts on different dimensions of enterprise ESG performance. Further analysis indicates that enterprises' green innovation and labor demand play a mediating role in the relationship between enterprises' digital transformation and ESG performance. Regional formal environmental regulation and informal environmental regulation moderates the path of firms' digital transformation promoting green innovation level to enhance ESG performance. This paper provides micro evidence in China for exploring the improvement of enterprises' ESG performance and provides relevant ideas for understanding the effect of digital transformation.

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Impact of digital transformation on performance of environment, social, and governance: Empirical evidence from China

Cited by 39 publications

References 68 publications

Does ESG performance bring to enterprises’ green innovation? Yes, evidence from 118 countries

Does ESG performance bring to enterprises’ green innovation? Yes, evidence from 118 countries

Digital technology innovation and corporate environmental, social, and governance performance: Evidence from a sample of listed firms in China

Digital transformation, environmental regulation and enterprises' ESG performance: Evidence from China

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