A Study of the Impact of Digital Transformation on Corporate ESG Performance

Yiting Mao

doi:10.54254/2754-1169/2025.BJ25979

Advances in Economics, Management and Political SciencesOpen access

A Study of the Impact of Digital Transformation on Corporate ESG Performance

Research Article

Open Access

A Study of the Impact of Digital Transformation on Corporate ESG Performance

Yiting Mao ^1*

¹ Zhongnan University of Economics and Law

^*Corresponding author: 1228925842@qq.com

Published on 13 August 2025

AEMPS Vol.209

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-309-3

ISBN (Online): 978-1-80590-310-9

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Abstract

This study examines the effects of corporate digital transformation on the environmental, social, and governance (ESG) performance of 988 A-share companies listed on the Shanghai and Shenzhen stock exchanges from 2012 to 2022. By employing a fixed-effects model, we delve into how these transformations positively influence ESG outcomes, while acknowledging the regional disparities in these effects. Building upon this, we explore the varied influences of environmental regulations—specifically, administrative directives and market incentives—on businesses' readiness and eagerness to undergo digital transitions. We develop two separate panel threshold regression models to assess these influences. The threshold existence tests reveal distinct single and double thresholds for the effects of each regulatory type. In light of these findings, we posit that fostering a greater number of enterprises to embrace digital transformation for enhanced ESG performance requires a collaborative effort between companies and the government to promote a balanced and sustainable development of China's economic, social, and environmental sectors.

Keywords:

digital transformation, ESG, environmental regulation, threshold effect

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References

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References

[1]. Qingqing Cheng, Zhiming Liu. The impact of green finance policies on ESG performance of polluting firms-Evidence from Chinese industrial firms [J]. Academic Research, 2024, (2).

[4]. Fei Wu, Huizhi Hu, Lin Huiyan et al. Corporate digital transformation and capital market performance - Empirical evidence from stock liquidity [J]. Management World, 2021, 37(07): 130-144+10.

[6]. Hongjun Xie, Xue Lv. Responsible international investment: ESG and China's OFDI [J].Economic Research, 2022, 57(03): 83-99.

[9]. Liangping Li, Xia Zhu. "Research on the Path of High-Quality Development of Rural Tourism Empowered by Digital Economy", Applied Mathematics and Nonlinear Sciences, 2024.

[10]. Tao Zhao, Zhi Zhang, Shangkun Liang. Digital Economy, Entrepreneurial Activity and High Quality Development - Empirical Evidence from Chinese Cities [J]. Management World, 2020, 36(10): 65-76.

Cite this article

Mao,Y. (2025). A Study of the Impact of Digital Transformation on Corporate ESG Performance. Advances in Economics, Management and Political Sciences,209,1-8.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN: 978-1-80590-309-3(Print) / 978-1-80590-310-9(Online)

Editor: Florian Marcel Nuţă Nuţă, Xuezheng Qin

Conference website: https://2025.icemgd.org/

Conference date: 20 September 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.209

ISSN: 2754-1169(Print) / 2754-1177(Online)

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