The Impact of Digital Transformation on Corporate ESG Performance--Dual Path Analysis Based on Financing Constraints and Government Regulation

Yajing Wang

doi:10.54254/2754-1169/2025.22612

Research Article

Open access

Published on 6 May 2025

Download pdf

Wang,Y. (2025). The Impact of Digital Transformation on Corporate ESG Performance--Dual Path Analysis Based on Financing Constraints and Government Regulation. Advances in Economics, Management and Political Sciences,180,1-9.

Export citation

The Impact of Digital Transformation on Corporate ESG Performance--Dual Path Analysis Based on Financing Constraints and Government Regulation

Yajing Wang *^,1,

¹ School of Economics, Sichuan University, Chengdu, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/2025.22612

Abstract

Against the backdrop of rapidly accelerating digital transformation, corporate performance in the areas of Environment, Social and Governance (ESG) has become a key indicator of corporate sustainability and long-term competitiveness. This paper explores the intricate mechanism of digital transformation on corporate ESG performance, utilizing the data of Chinese A-share listed companies from 2013 to 2023. By constructing a two-path analytical framework and a panel regression model, this study finds that corporate digital transformation significantly enhances the overall corporate ESG performance through the mediating channels of alleviating financing constraints and strengthening government regulation. The impact is particularly prominent among state-owned enterprises and firms with relatively low market competitiveness. The results provide a theoretical basis for policy makers to optimise the efficiency of resource allocation. They also offer practical guidance for enterprises to implement differentiated digital transformation strategies, which is of practical guidance value for regions with high financing constraints and policy-supported industries.

Keywords

Digital transformation, corporate ESG, financing constraints, government regulation, dual path analysis

View pdf

References

[1]. Wu, P., Li, T. L. Do MSCI concerns affect disclosure of key audit matters? [J]. Journal of Nanjing Auditing University,2024,21(3):14-23.

[2]. Bhimani, A., & Willcocks, L. (2014). Digitisation, 'big data' and the transformation of accounting information. Accounting & Business Research, 44(4), 469-490.

[3]. Gao, Y., Zhang, Y., & Liu, C. (2024). Can digital transformation enhance corporate environmental, social, and governance performance? The moderating role of executive team heterogeneity. Science and Technology Progress and Countermeasures, 41(11), 55-66.

[4]. Zhong, T., & Hu, J. (2024). Corporate digital transformation and ESG performance: Based on managerial learning theory perspective. Accounting Friends, 2024(11), 118-126.

[5]. Zhang, J. (2023). Research on the impact of digital transformation on corporate ESG performance: Based on the dual perspective of technological innovation and financing constraint level. Modern Finance, 2023(12), 11-19.

[6]. Han, Z., & Zhang, Y. (2023). Digital transformation and ESG performance: Analysis of mediation mechanisms based on information transparency and total factor productivity. Modern Management Science, 2023(3), 141-150.

[7]. Song, Y., & Wu, J. (2024). Digital transformation and corporate ESG performance: A dual perspective based on media attention and executive overconfidence. Chongqing Social Science, 2024(1), 88-100.

[8]. Ren, G., Lai, R., & Zhao, L. (2024). Environmental regulation, digital transformation and green technology innovation: Analysis of data from Chinese industrial enterprises. Journal of Beijing Institute of Technology (Social Science Edition), 26(3), 28-42.

[9]. Zhao, C., Zhao, Y., & Wu, Y. (2024). Digital empowerment, sustainable exploration practices and green innovation in manufacturing firms: A micro-investigation of firms under environmental regulation. Business Research, 2024(3), 134-141.

[10]. Zhang, R., Guo, S., & Chang, J. (2024). ESG performance, digital transformation, and corporate financial risk. Technology and Innovation Management, 45(3), 343-354.

[11]. Pang, R., Zhang, S., & Wang, Q. (2021). Can digitalisation improve environmental governance performance? Empirical evidence from inter-provincial panel data. Journal of Xi'an Jiaotong University (Social Science Edition), 41(5), 1-10.

[12]. Zhang, H., & Dong, W. (2024). Government boosting and corporate ESG actions. Accounting Newsletter, 2024(2), 19-23.

[13]. Wu, F., Hu, H. Z., Lin, H. Y., et al. (2021). Corporate digital transformation and capital market performance: Empirical evidence from stock liquidity. Management World, 37(07), 130-144+10.

[14]. Chen, S., & Chen, D. (2018). Haze pollution, government governance and high quality economic development. Economic Research, 53(02), 20-34.

[15]. Wen, Z., Zhang, L., Hou, J., et al. (2004). Mediation effect test procedure and its application. Journal of Psychology, 2004(05), 614-620.

Cite this article

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 3rd International Conference on Management Research and Economic Development

Conference website: https://2025.icmred.org/

ISBN：978-1-80590-081-8(Print) / 978-1-80590-082-5(Online)

Conference date: 30 May 2025

Editor：Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.180

ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).