The Impact of Digitalization on ESG Performance: Evidence from China
DOI:
https://doi.org/10.54097/71tq9m77Keywords:
ESG, Digitalization, Cost Reduction.Abstract
In the context of the contemporary era, the intersection of companies' digital practices and the ESG concept of pursuing sustainable development reflects a profound connection between the two. Based on the data of A-share listed companies from 2015 to 2020, this study empirically examines the impact of digitalization on ESG performance. The study finding indicates that the digital development of companies has a positive promotional effect on their SG performance, and this conclusion remains calid after a series of robustness tests. This study enriches the literature on the consequences of digitalization and complements the literature on the determinants of ESG performance. Moreover, this study offers practical implicants for listed firms, regulators and investors by showing that digitalization can both enhance ESG performance and effectively cuts down on enterprises’ operating costs.
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