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Technology empowerment, digital transformation, and enhancing corporate ESG performance

Author

Listed:
  • Zhao, Yukun
  • Zhou, Yi
  • Yang, Qingfu
  • Gong, Yiyun

Abstract

This paper analyzes the interrelationships and mechanisms among technology empowerment, digital transformation, and carbon performance in enhancing corporate ESG performance, based on data from publicly listed companies from 2010 to 2023. The research findings indicate that technology empowerment has a significant positive impact on corporate ESG performance. Further analysis reveals that the promoting effect of technology empowerment on corporate ESG performance exhibits heterogeneity across companies of different sizes, particularly in larger firms, where the enhancement effect on ESG performance is more pronounced. Additionally, digital transformation plays a mediating role between technology empowerment and corporate ESG performance, suggesting that technology empowerment facilitates ESG performance improvement by driving digital transformation. Lastly, corporate carbon performance also serves as a mediating factor between technology empowerment and corporate ESG performance, especially in optimizing carbon emission management, which contributes to enhancing a company's ESG performance in the environmental dimension.

Suggested Citation

  • Zhao, Yukun & Zhou, Yi & Yang, Qingfu & Gong, Yiyun, 2025. "Technology empowerment, digital transformation, and enhancing corporate ESG performance," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025004022
    DOI: 10.1016/j.iref.2025.104239
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    References listed on IDEAS

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