How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance

Abstract The study empirically examines the impact of firm digital transformation (DT) on the performance of Chinese-listed enterprises in the areas of environmental, social, and governance (ESG) from 2013 to 2022. We utilized OLS, IV 2SLS causal mediating effect, and moderating effect models to ana...

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Main Authors: Xiangwei Xie, Hongyu Zhu, Jinjing Zhao
Format: Article
Language:English
Published: Springer Nature 2024-11-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-024-04039-5
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author Xiangwei Xie
Hongyu Zhu
Jinjing Zhao
author_facet Xiangwei Xie
Hongyu Zhu
Jinjing Zhao
author_sort Xiangwei Xie
collection DOAJ
description Abstract The study empirically examines the impact of firm digital transformation (DT) on the performance of Chinese-listed enterprises in the areas of environmental, social, and governance (ESG) from 2013 to 2022. We utilized OLS, IV 2SLS causal mediating effect, and moderating effect models to analyze the linkages and deep mechanisms between corporate DT and ESG performance. The empirical findings demonstrate that (i) DT has an effectively positive effect on the performance of firms’ ESG; (ii) DT enhances firms’ ESG performance by enhancing information transparency (TRANS), fostering green innovation (Green), and strengthening internal control (Inter) mechanisms; moreover, (iii) According to the study, common institutional ownership (CIO) effectively facilitates the positive effects of the DT impact on the ESG performance of listed enterprises, and firms’ subjective perception of economic policy uncertainty (SEPU) negatively influences the effect of digital change on firms’ ESG performance; (iv) the impact of DT on ESG performance is more significant in the listed companies of western region and state-owned enterprises. Our findings provide valuable insights into whether and how DT affects the firms’ ESG performance, providing practical recommendations for corporate managers and government decision-making agencies.
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spelling doaj-art-aedcee5d497c4f9cbf0177f3748e153e2024-11-17T12:15:32ZengSpringer NatureHumanities & Social Sciences Communications2662-99922024-11-0111111510.1057/s41599-024-04039-5How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performanceXiangwei Xie0Hongyu Zhu1Jinjing Zhao2School of Business, Southwest UniversitySchool of Business, Southwest UniversitySchool of Administration, Northeastern UniversityAbstract The study empirically examines the impact of firm digital transformation (DT) on the performance of Chinese-listed enterprises in the areas of environmental, social, and governance (ESG) from 2013 to 2022. We utilized OLS, IV 2SLS causal mediating effect, and moderating effect models to analyze the linkages and deep mechanisms between corporate DT and ESG performance. The empirical findings demonstrate that (i) DT has an effectively positive effect on the performance of firms’ ESG; (ii) DT enhances firms’ ESG performance by enhancing information transparency (TRANS), fostering green innovation (Green), and strengthening internal control (Inter) mechanisms; moreover, (iii) According to the study, common institutional ownership (CIO) effectively facilitates the positive effects of the DT impact on the ESG performance of listed enterprises, and firms’ subjective perception of economic policy uncertainty (SEPU) negatively influences the effect of digital change on firms’ ESG performance; (iv) the impact of DT on ESG performance is more significant in the listed companies of western region and state-owned enterprises. Our findings provide valuable insights into whether and how DT affects the firms’ ESG performance, providing practical recommendations for corporate managers and government decision-making agencies.https://doi.org/10.1057/s41599-024-04039-5
spellingShingle Xiangwei Xie
Hongyu Zhu
Jinjing Zhao
How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance
Humanities & Social Sciences Communications
title How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance
title_full How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance
title_fullStr How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance
title_full_unstemmed How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance
title_short How effective is digital transformation? Heterogeneous insights from listed companies’ ESG performance
title_sort how effective is digital transformation heterogeneous insights from listed companies esg performance
url https://doi.org/10.1057/s41599-024-04039-5
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AT jinjingzhao howeffectiveisdigitaltransformationheterogeneousinsightsfromlistedcompaniesesgperformance