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Digital Technology and Corporate Social Responsibility: Evidence from China

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  • Dongmin Kong
  • Boyang Liu

Abstract

While the rapid development of digital technology has attracted great attention from researchers, media, and policymakers, whether and how the adoption of digital technology shapes corporate social responsibility (CSR) remain unclear. In this study, we examine the effects of digital technologies on CSR based on listed firms in China’s stock markets from 2009 to 2019. We find that digital transformation significantly promotes CSR. This result is unchanged when we further introduce an exogenous shock, China’s 4 G-LTE policy, to identify the causality. Mechanistical analysis shows that digital technology helps companies improve pollution control capabilities and internal control efficiency, thereby improving CSR performance. Cross-sectionally, the above promotion effect is more significant in firms with low financing constraints and greater regulatory pressure. Overall, this study sheds new light on firms fulfilling their social responsibilities in the digital era.

Suggested Citation

  • Dongmin Kong & Boyang Liu, 2023. "Digital Technology and Corporate Social Responsibility: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(9), pages 2967-2993, July.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:9:p:2967-2993
    DOI: 10.1080/1540496X.2023.2199122
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    Citations

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    Cited by:

    1. Zhang, Haiyan & Dong, Shizheng, 2023. "Digital transformation and firms' total factor productivity: The role of internal control quality," Finance Research Letters, Elsevier, vol. 57(C).
    2. Cui, Lin & Wang, Yanshu, 2023. "Can corporate digital transformation alleviate financial distress?," Finance Research Letters, Elsevier, vol. 55(PB).
    3. Guangyu Huang & Liqiong Shen, 2024. "The Bidirectional Relationship between Digital Transformation and Corporate Social Responsibility: A Legitimacy Perspective," Sustainability, MDPI, vol. 16(7), pages 1-21, April.
    4. Zhou, Chensong & Zhang, Xiangzhi & Xiong, Lingyun & Chen, Chuanyong, 2023. "Merger and acquisition performance commitments and shareholding reductions," Finance Research Letters, Elsevier, vol. 57(C).
    5. Wang, Ping & Wang, Xiaochun & Wu, Jie, 2023. "Executives' regulatory experiences and corporate social responsibility," Finance Research Letters, Elsevier, vol. 55(PB).
    6. Xie, Xin & Zhang, Wenjie, 2023. "Impacts of CSR on the efficiency of Chinese enterprises' Outward FDI," Finance Research Letters, Elsevier, vol. 57(C).
    7. Jiang, Airu, 2023. "The impact of digital finance on online shopping," Finance Research Letters, Elsevier, vol. 56(C).
    8. Kong, Gaowen & Huang, Jiating & Kong, Dongmin & Zhu, Ling, 2023. "Female executives, industrial robots, and stock price crash risk," Finance Research Letters, Elsevier, vol. 57(C).
    9. Zhu, Wenpeng, 2023. "Digital financial inclusion and the share of labor income: Firm-level evidence," Finance Research Letters, Elsevier, vol. 56(C).
    10. Huang, Ruilei & Wei, Jiuchang, 2023. "Does CEOs’ green experience affect environmental corporate social responsibility? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 205-231.
    11. Shen, Yuchen & Ren, Xiaoping, 2023. "Digital finance and upgrading of industrial structure: Prefecture-level evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).
    12. Xiao Liu & Huanxue Pan & Weixing Lin & Mengkai Wang & Qiange Zhang, 2024. "Sustainable Practices and Performance of Resource-Based Companies: The Role of Internal Control," Sustainability, MDPI, vol. 16(4), pages 1-14, February.

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