Business

Does corporate digital transformation restrain ESG decoupling? Evidence from China

X. Chen, P. Wan, et al.

Explore how corporate digital transformation can significantly reduce ESG decoupling, enhancing information processing and reducing asymmetry. This innovative research was conducted by Xiangyu Chen, Peng Wan, Zhefeng Ma, and Yu Yang.

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Playback language: English

Index

Abstract

This paper empirically examines the efficacy of corporate digital transformation on a firm's environmental, social, and governance (ESG) decoupling. Using a sample of Chinese A-share listed firms from 2010 to 2019 and text analysis, the paper finds that digital transformation significantly alleviates ESG decoupling. Mechanism analysis reveals that this occurs by improving information processing and reducing information asymmetry. The relationship is stronger in eastern China and for firms not following GRI guidance. Economic consequence analysis suggests digital transformation promotes high-quality development by reducing ESG decoupling.

Publisher

Humanities & Social Sciences Communications

Published On

Mar 14, 2024

Authors

Xiangyu Chen, Peng Wan, Zhefeng Ma, Yu Yang

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