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Digital technology innovation and corporate ESG performance: evidence from China

Author

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  • Li Wang

    (Central University of Finance and Economics)

  • Hongyu Yang

    (Central University of Finance and Economics)

Abstract

Using Chinese listed companies from 2010 to 2022, this study empirically examines the impact of digital technology innovation on corporate ESG performance. The results show that digital technology innovation significantly enhances corporate ESG performance, positively impacting E, S, and G aspects. The mechanism analysis indicates that digital technology innovation further improves enterprises’ ESG performance by fostering green innovation, and enhancing the corporate governance structure. Moreover, the heterogeneity analysis reveals that digital technology innovation can better promote the improvement of ESG performance in larger enterprises, non-state-owned enterprises, industries with heavy pollution, non-high-tech industries, enterprises in the eastern and central regions, and regions with better business environments. This study enriches and expands the scope of research on the effects of the digital economy at the micro level, and provides new research perspectives to help listed companies effectively fulfil their ESG responsibilities and achieve carbon peaking and carbon neutrality goals.

Suggested Citation

  • Li Wang & Hongyu Yang, 2024. "Digital technology innovation and corporate ESG performance: evidence from China," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-32, December.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:6:d:10.1007_s10644-024-09791-x
    DOI: 10.1007/s10644-024-09791-x
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    7. Zhou, Xiaoyong & Li, Gaochao & Wang, Qunwei & Li, Yangganxuan & Zhou, Dequn, 2025. "Artificial intelligence, corporate information governance and ESG performance: Quasi-experimental evidence from China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    8. Cuicui Huang, 2025. "Digital transformation and corporate ESG performance: Research based on a capability-motivation dual framework," PLOS ONE, Public Library of Science, vol. 20(6), pages 1-27, June.
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    11. Yichun Zhang & Xinyi Zhang, 2025. "Analysis of the Influence Mechanism of Digital Transformation on the New Quality Productivity of Enterprises --The Mediating Role of Financing Constraints and ESG Ratings," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 17(2), pages 1-15, February.
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    13. Wen, Bohui & You, Wei & Yuan, Ming, 2025. "The Impact of commercial banks' ESG performance: Difference between provocative and passive risk-taking – Evidence from China," Research in International Business and Finance, Elsevier, vol. 76(C).
    14. Meng, Chenyu & Lin, Yongsheng, 2025. "The impact of supply chain digitization on the carbon emissions of listed companies—A quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 392-406.
    15. Jiang, Lisha & Zhou, Wei & Hualiang, Wu & Deng, Wei, 2025. "Impact of business environment uncertainty on ESG performance from the perspective of resource supply and demand based on ESG performance," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1012-1030.
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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