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Effects of green finance and digital transformation on enhancing corporate ESG performance

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  • Sun, Tingxuan
  • Liu, Suqin
  • Guo, Min

Abstract

In the context of digital transformation, where firms leverage digital tools for process enhancement, innovation, and efficiency, this study utilizes data from annual reports of Chinese listed corporations from 2012 to 2022 to empirically analyze how green finance and digital transformation jointly enhance corporate environmental, social, and governance (ESG) performance. Findings indicate that green financial initiatives and digital transformation substantially boost corporate ESG performance, with the scale of the company acting as a crucial moderating factor in this relationship. Results indicate notable heterogeneity in the influence of digital shifts on ESG score improvements between state-owned entities and private firms.

Suggested Citation

  • Sun, Tingxuan & Liu, Suqin & Guo, Min, 2025. "Effects of green finance and digital transformation on enhancing corporate ESG performance," Finance Research Letters, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:finlet:v:74:y:2025:i:c:s154461232500039x
    DOI: 10.1016/j.frl.2025.106774
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