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Digital Financial Infrastructure and Corporate Sustainability: Evidence from China’s e-CNY

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  • Zhang, Jiangang
  • Cao, Zhimin

Abstract

Central bank digital currencies (CBDCs) are becoming a critical institutional form in the digitalization of sovereign money. Their programmable, traceable, and account-decoupled features are reshaping payment systems and information structures. As one of the earliest major economies to pilot large-scale retail CBDCs, China’s e-CNY offers a unique setting to examine the role of digital financial infrastructure in corporate governance. Using data on Chinese A-share listed firms from 2014 to 2023, this study employs a difference-in-differences model to assess the impact of e-CNY on ESG outcomes. The findings show that e-CNY significantly enhances firms’ ESG performance through three channels: enhancing credible compliance, optimizing trusted coordination, and advancing data-based credit. By adopting a micro-level perspective, this study broadens the sustainability governance implications of digital financial infrastructure reform and provides evidence for economies seeking to align CBDC design and payment system innovation with corporate sustainability and green transition.

Suggested Citation

  • Zhang, Jiangang & Cao, Zhimin, 2026. "Digital Financial Infrastructure and Corporate Sustainability: Evidence from China’s e-CNY," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325026728
    DOI: 10.1016/j.frl.2025.109423
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    Cited by:

    1. Zhang, Jiangang & Cao, Zhimin, 2026. "Assessing the potential of trade policy in promoting inclusive green growth: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 1005-1025.
    2. Zhang, Jiangang, 2026. "Financial patience and technological ambition: How patient capital shapes corporate AI strategy," Finance Research Letters, Elsevier, vol. 91(C).

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    Keywords

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    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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