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How Government Open Data Platforms Affect Corporate ESG Performance

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  • Ruihan Xu

    (School of Economics, Huazhong University of Science and Technology, Luoyu Road No.1037, Wuhan 430074, China)

  • Changsheng Xu

    (School of Economics, Huazhong University of Science and Technology, Luoyu Road No.1037, Wuhan 430074, China)

Abstract

Information is a critical factor shaping firms’ strategic decisions. In the era of digital governance, governments can improve information transparency through public data openness, yet how this influences corporate sustainability practices remains underexplored. Using data on Chinese A-share listed firms from 2007 to 2023, this study employs a staggered difference-in-differences approach to examine the impact of Government Open Data Platforms on corporate environmental, social, and governance (ESG) performance. The results show that the establishment of Government Open Data Platforms significantly improves firms’ ESG performance. Mechanism analysis reveals that the effect operates through two channels: first, by reducing firms’ perceived uncertainty, thereby enhancing their internal motivation to engage in long-term ESG investments; second, by increasing external attention, which strengthens stakeholder oversight and reputational incentives. Further heterogeneity analyses show that such positive impact is stronger in cities with higher-quality data platforms, among non-heavily polluting firms, and for state-owned enterprises. Overall, these results highlight that government-led data openness can lower information frictions, serving as an effective soft governance tool to promote corporate sustainability.

Suggested Citation

  • Ruihan Xu & Changsheng Xu, 2025. "How Government Open Data Platforms Affect Corporate ESG Performance," Sustainability, MDPI, vol. 17(21), pages 1-29, November.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:21:p:9768-:d:1785786
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