IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i11p4999-d1667548.html
   My bibliography  Save this article

How ESG and Digitalization Drive High-Quality Enterprise Development: Evidence from China

Author

Listed:
  • Zheng Xue

    (School of Finance, Nankai University, Tianjin 300350, China)

  • Kaili Li

    (School of Economics, University of International Business and Economics, Beijing 100029, China)

  • Qi Ban

    (School of Finance, Nankai University, Tianjin 300350, China)

  • Jialing Li

    (School of Business Administration, Hunan University of Technology and Business, Changsha 410205, China)

Abstract

The ESG performance of enterprises is congruent with contemporary development concepts and plays a pivotal role in promoting enterprises to achieve high-quality development. The present study commences with an evaluation of the high-quality development of firms across multiple dimensions. It then undertakes an empirical investigation into the impact of ESG performance on the high-quality development of firms. This study utilises data from Chinese A-share listed firms from 2010 to 2023. The findings indicate that ESG performance has the capacity to encourage firms to advance towards high-quality development. Digital transformation is identified as a significant factor that positively moderates the facilitating effect of ESG performance on firms. The mechanism of action of ESG performance involves enhancing supply chain stability and alleviating financing constraints. Furthermore, evidence suggests that ESG performance tends to be heterogeneous in its contribution to the high-quality development of enterprises, with more significant facilitating effects for state-owned enterprises and firms in regions with favourable business environments. The present study offers theoretical and practical empirical support for the establishment of an ESG system that is suitable for China’s national conditions and that will promote high-quality firm development.

Suggested Citation

  • Zheng Xue & Kaili Li & Qi Ban & Jialing Li, 2025. "How ESG and Digitalization Drive High-Quality Enterprise Development: Evidence from China," Sustainability, MDPI, vol. 17(11), pages 1-26, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:4999-:d:1667548
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/11/4999/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/11/4999/
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:4999-:d:1667548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.