Can digital transformation enhance corporate ESG performance? The moderating role of dual environmental regulations

Junjun Li; Tong Wu; Bailu Liu; Ming Zhou

doi:10.1016/j.frl.2024.105241

Can digital transformation enhance corporate ESG performance? The moderating role of dual environmental regulations

Junjun Li
, Tong Wu
, Bailu Liu
, Ming Zhou^*

^*Corresponding author for this work

School of Economics and Management

Research output: Contribution to journal › Article › peer-review

57 Scopus citations

Abstract

This research investigates the influence of digital transformation on corporate ESG performance, with emphasis on dual environmental regulations’ moderating effects, using data from Chinese companies (2011–2020). The results show that digital transformation significantly boosts ESG performance, a finding that persists across various model specifications. The study highlights the amplifying role of both formal and informal environmental regulations in this dynamic, with informal regulations having a stronger effect. This work fills a gap in literature and suggests that environmental regulations are key in leveraging digital transformation for improved ESG outcomes, providing important policy insights.

Original language	English
Article number	105241
Journal	Finance Research Letters
Volume	62
DOIs	https://doi.org/10.1016/j.frl.2024.105241
State	Published - Apr 2024

Keywords

Digital transformation
ESG
Formal environmental regulation
Informal environmental regulation

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10.1016/j.frl.2024.105241

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title = "Can digital transformation enhance corporate ESG performance? The moderating role of dual environmental regulations",

abstract = "This research investigates the influence of digital transformation on corporate ESG performance, with emphasis on dual environmental regulations{\textquoteright} moderating effects, using data from Chinese companies (2011–2020). The results show that digital transformation significantly boosts ESG performance, a finding that persists across various model specifications. The study highlights the amplifying role of both formal and informal environmental regulations in this dynamic, with informal regulations having a stronger effect. This work fills a gap in literature and suggests that environmental regulations are key in leveraging digital transformation for improved ESG outcomes, providing important policy insights.",

keywords = "Digital transformation, ESG, Formal environmental regulation, Informal environmental regulation",

author = "Junjun Li and Tong Wu and Bailu Liu and Ming Zhou",

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doi = "10.1016/j.frl.2024.105241",

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AU - Li, Junjun

AU - Wu, Tong

AU - Liu, Bailu

AU - Zhou, Ming

PY - 2024/4

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AB - This research investigates the influence of digital transformation on corporate ESG performance, with emphasis on dual environmental regulations’ moderating effects, using data from Chinese companies (2011–2020). The results show that digital transformation significantly boosts ESG performance, a finding that persists across various model specifications. The study highlights the amplifying role of both formal and informal environmental regulations in this dynamic, with informal regulations having a stronger effect. This work fills a gap in literature and suggests that environmental regulations are key in leveraging digital transformation for improved ESG outcomes, providing important policy insights.

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KW - ESG

KW - Formal environmental regulation

KW - Informal environmental regulation

UR - https://www.scopus.com/pages/publications/85187974180

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DO - 10.1016/j.frl.2024.105241

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VL - 62

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JF - Finance Research Letters

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ER -

Can digital transformation enhance corporate ESG performance? The moderating role of dual environmental regulations

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Keywords

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