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Digital transformation and ESG performance: The chain mediating role of technological innovation and financing constraints

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  • Xu, Jian
  • Yin, Jian

Abstract

This paper aims to examine the impact of corporate digital transformation on environmental, social, and governance (ESG) performance of Chinese listed enterprises during 2018–2022. We also explore the chain mediating role of technological innovation and financing constraints. The paper suggests a positive relationship between digital transformation and ESG performance, and this impact is more prominent in private-owned enterprises, in large enterprises, and in high-tech and heavy-polluted industries. In addition, technological innovation and financing constraints have a chain mediating role in the influence of digital transformation on ESG performance. The findings will aid companies in improving ESG performance and achieving digital maturity.

Suggested Citation

  • Xu, Jian & Yin, Jian, 2025. "Digital transformation and ESG performance: The chain mediating role of technological innovation and financing constraints," Finance Research Letters, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014168
    DOI: 10.1016/j.frl.2024.106387
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    References listed on IDEAS

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    Cited by:

    1. Liu, Ethan Xin & Dang, Lily, 2025. "Digital transformation and debt financing cost: A threefold risk perspective," Journal of Financial Stability, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Digital transformation; ESG performance; Technological innovation; Financing constraints; Chain mediating effect;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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