The Nexus of Tech-Enabled Financial Disruptions, Internet Plus Policy, Business Climate Uncertainty, and ESG Performance in China: Evidence from a Sys-GMM Approach

Rapid integration of technology-driven solutions has transformed corporate strategies in the quest for effective sustainability frameworks. The study provides a robust theoretical foundation for understanding financial digitalization and ESG dynamics within policy frameworks and the complexities of the business environment using a panel dataset of listed financial institutions in China from 2012 to 2023, employing a two-step system-GMM approach. The results reveal a significant positive relationship between tech-enabled financial disruptions and ESG performance, implying that tech-enabled solutions in the financial sector enhance sustainability outcomes. Furthermore, the internet plus policy strengthens this relationship by fostering a supportive digital ecosystem, while business climate uncertainty negatively influences it, underscoring the detrimental effects of regulatory and economic unpredictability on ESG commitments. These insights hold important implications for policymakers and corporate executives in leveraging financial digitalization to optimize ESG performance, strengthen digital policies, and overall sustainability while balancing risk management to encourage long-term sustainable investments.