Impact of Industry Digitization on ESG Performance – An Empirical Analysis Based on Industry Perspective

Han Lin; Zheyi Liu; Jingwei Sun

doi:10.54097/smg44e66

Authors

Han Lin
Zheyi Liu
Jingwei Sun

DOI:

https://doi.org/10.54097/smg44e66

Keywords:

industrial digitization, ESG, digital economy, financing constraints, largest shareholder shareholdings.

Abstract

This research seeks to investigate the influence of industrial digitalization on environmental, social responsibility, and corporate governance (ESG) outcomes. Through the utilization of a panel data model, the study demonstrates that the industrial digitalization index exerts a notable positive effect on corporate ESG performance, with this impact displaying a gradual augmentation in recent periods. The findings elucidate the correlation between industrial digitalization and ESG performance, underscoring the significance of corporate ESG ratings. Furthermore, the study contributes to the scholarly discourse on the industrial digitization process and the determinants of ESG performance, shedding light on the repercussions of digitalization advancement on industry ESG through an industry-centric lens.

Downloads

Download data is not yet available.

References

[1] HU Jie, HAN Yiming, ZHONG Yong. How corporate digital transformation affects corporate ESG performance - Evidence from Chinese listed companies[J]. Industrial Economics Review,2023(01):105-123.

[2] WANG Xiaohong, LUAN Xiangyu, ZHANG Shaopeng. Corporate R&D investment, ESG performance and market value-the moderating effect of corporate digitalization level[J]. Research in Science,2023,41(05):896-904+915.

[3] Gao, J.Y. et al, Can ESG performance improve corporate investment efficiency? Securities Market Herald, 2021(11): pp. 24-34+72.

[4] Haijun Wang et al, Does Digital Transformation Improve Corporate ESG Responsibility Performance? -An empirical study based on the MSCI index. Foreign Economics and Management: pp. 1-17.

[5] Shulin Liu, Mengjie Li & Su-Min Hu, Mechanism of enterprise digitalization on technological innovation capability. Modern Management Science, 2022(03): pp. 109117.

[6] Chen, X. & Yang, X., The impact of digital economy development on industrial structure upgrading - A study based on gray correlation entropy and dissipative structure theory. Reform, 2021(03): pp. 26-39.

[7] He Fan & Liu Hongxia, Assessment of the performance improvement effect of digital change in physical enterprises under the perspective of digital economy. Reform, 2019(04): pp. 137-148.

[8] Chi, I.D. & Xiao, X., Corporate management change in the digital economy. Management World, 2020. 36(06): pp. 135-152+250.

[9] Yuan, Chun et al. Digital transformation and corporate division of labor: specialization or vertical integration. China Industrial Economics, 2021(09): pp. 137-155.

[10] Zhao, Huijuan & Wei, Zhonglong, Research on the Mechanism of the Impact of Digital Economy Development on Employment and the Path to Promote Employment. Innovation, 2021. 15(06): pp. 73-83.

[11] Cui, J., et al., How digitalization and financial development impact eco-efficiency? Evidence from China. ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH.

[12] Maaloul, A.; Zéghal, D.; Amar, W.B.; Mansour, S. The effect of environmental, social, and governance (ESG) performance and disclosure on cost of debt. The mediating effect of corporate reputation. Corp. Reput. Rev. 2023, 26, 1-18. DOI: https://doi.org/10.1057/s41299-021-00130-8

[13] Qingqing Zhao; Xintao Li; Siqi Li. Analyzing the Relationship between Digital Transformation Strategy and ESG Performance in Large Manufacturing Enterprises: The Mediating Role of Green Innovation. Sustainability. 2023, 15(13) DOI: https://doi.org/10.3390/su15139998

[14] Yingjia Zhong; Hongyan Zhao; Tianbao Yin. Resource Bundling: How Does Enterprise Digital Transformation Affect Enterprise ESG Development? Sustainability. 2023, 15(2), 13-19. DOI: https://doi.org/10.3390/su15021319

[15] L. Teng; D. Ma. Can digital finance help to promote high-quality development? Statistical Res, 37 (2020), pp. 80-92

[16] Kankan Wen; Andrew Agyemang; Noha Alessa; Inusah Sulemana; Abednego Osei. The Moderating Role of Ownership Concentration on Financing Decisions and The Moderating Role of Ownership Concentration on Financing Decisions and Firm's Sustainability: Evidence from China.

[17] Yuxin Ning; Yihan Zhang. Does Digital Finance Improve Corporate ESG Performance? An Intermediary Role Based on Financing Constraints. sustainability Sustainability 2023, 15(13), 10685 DOI: https://doi.org/10.3390/su151310685

[18] Zhaozhi Wang, Shoufu Lin, Yang Chen, Oleksii Lyulyov, Tetyana Pimonenko. Digitalization Effect on Business Performance: Role of Business Model Innovation. Sustainability 2023, 15(11), 9020 DOI: https://doi.org/10.3390/su15119020

[19] Skare M, Maria D L M D O , Ribeiro-Navarrete S .Digital transformation and European small and medium enterprises (SMEs): a comparative study using digital economy and society index data[J].International journal of information management, 2023. DOI: https://doi.org/10.1016/j.ijinfomgt.2022.102594