Does digital inclusive finance policy promote ESG: Evidence from China

This paper explores the specific impact of digital inclusive finance on enterprises' ESG level, and puts forward the research hypothesis that the improvement of digital inclusive finance can promote the improvement of enterprises' ESG level. Taking A-share listed companies from 2012 to 2023 as samples, this paper explores the relationship between digital inclusive finance and ESG level. The results show that: (1) digital inclusive finance has a significantly positive impact on ESG level of enterprises, and the impact is more robust after adding control variables. From the perspective of segmentation dimension, the coverage breadth and use depth of digital inclusive finance have a significantly positive effect on the ESG level of enterprises. (2) The degree of digital transformation plays an intermediary role between digital inclusive finance and enterprise ESG level. (3) The level of regional digital infrastructure has a positive moderating effect on the relationship between the two. (4) Heterogeneity analysis shows that the digital transformation of low green innovation enterprises and enterprises in the central and western regions has a significant improvement effect on ESG level, while the improvement effect of high green innovation enterprises and enterprises in the eastern region is weak. (5) Analysis of economic consequences show that promoting the development of digital inclusive finance can further improve the total factor productivity of enterprises. The research results of this paper provide an empirical basis for the formulation of national digital inclusive financial policies, and provide policy suggestions for policy makers to strengthen financial supervision. For enterprises, this paper provides empirical data and analytical framework on the relationship between digital inclusive finance and ESG, helps enterprises better understand the importance of digital transformation and green innovation for sustainable development of enterprises, and provides scientific basis for enterprises to make strategic decisions.