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Impact of Tech‐Enabled Financial Disruptions and Internet Plus Initiative on Environmental, Social, and Governance (ESG) Performance in China: Evidence From a PVAR Approach

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  • Edward Idemudia Agboare
  • Luo Guang
  • Atta Ullah
  • Huma Iftikhar

Abstract

Technological advancements have become an integral part of traditional industries but have also raised the question of how these modern technologies would impact sustainable practices, ethical innovation, and transparency. This study examines the impact of tech‐enabled financial disruptions on Environmental, Social, and Governance (ESG) performance using a panel vector autoregression (PVAR) approach to analyze 122 A‐listed Chinese financial institutions (5856 quarterly observations) from 2012 to 2023. We examined the dynamic interactions across tech‐enabled financial disruptions, Internet Plus, and ESG metrics, providing insights into immediate and delayed effects. The findings reveal that tech‐enabled financial disruptions boost ESG performance. However, Internet Plus implementation and its interaction with tech‐enabled financial disruptions initially pose challenges but ultimately promote ESG performance as institutions adapt. These results underscore the importance of phased policy rollouts and strategic adaptation to maximize ESG advantages through tech‐enabled financial disruptions. Recognizing the critical role of tech‐enabled financial disruptions in enhancing ESG performance, this study suggests tailored frameworks that are capable of aligning tech‐enabled financial disruptions with broader sustainable development goals for 2030. It also encourages financial institutions to integrate ESG strategies with digitalization from its onset.

Suggested Citation

  • Edward Idemudia Agboare & Luo Guang & Atta Ullah & Huma Iftikhar, 2025. "Impact of Tech‐Enabled Financial Disruptions and Internet Plus Initiative on Environmental, Social, and Governance (ESG) Performance in China: Evidence From a PVAR Approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(6), pages 3467-3485, September.
  • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:6:p:3467-3485
    DOI: 10.1002/mde.4527
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