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Data-Driven sustainability: Examining the impact of data element utilization on corporate ESG performance

Author

Listed:
  • Zhao, Yidan
  • Zhang, Cong
  • Zhao, Yiming
  • Zhou, Lin

Abstract

This study investigates the impact of data element utilization on corporate environmental, social, and governance (ESG) performance among Chinese listed companies, emphasizing the moderating influence of organizational resilience and various effects across different corporate life cycle stages. Using a comprehensive dataset of 28,962 firm–year observations from 2010 to 2022, this study reveals a positive correlation between data element utilization and improved ESG performance, which is significantly strengthened by organizational resilience. Additionally, the positive impact of data element utilization on ESG performance is more pronounced for firms in growing and declining life cycle stages, whereas the effect is less significant for mature firms. The findings highlight the critical role of sophisticated data management strategies and organizational resilience in enhancing corporate sustainability efforts. Companies should consider these factors when implementing data-driven strategies for sustainability, with a particular focus on the firm's life cycle stage to maximize ESG performance improvement.

Suggested Citation

  • Zhao, Yidan & Zhang, Cong & Zhao, Yiming & Zhou, Lin, 2025. "Data-Driven sustainability: Examining the impact of data element utilization on corporate ESG performance," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324017021
    DOI: 10.1016/j.frl.2024.106673
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    References listed on IDEAS

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    2. Yu, Yang & Chan, Hau-Ling & Cho, Erin, 2026. "Enhancing ESG performance through digital transformation: Recent development, cases and relationships," Journal of Business Research, Elsevier, vol. 202(C).

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