Digital finance and corporate ESG

Weiwei Mu, Kefu Liu, Yunqing Tao and Yongwei Ye

Finance Research Letters, 2023, vol. 51, issue C

Abstract: This study investigates the effect of digital finance on corporate environment, social and governance (ESG). Using a large sample of Chinese listed firms over the period 2011–2020, we find that digital finance positively affects corporate ESG performance, which remains robust after a series of robustness checks. We also find that digital finance enhances the ESG by mitigating corporate financial constraints. In addition, the positive effect of digital finance on corporate ESG performance is more pronounced in non-state-owned firms, small-sized firms, firms with lower level of marketization, and firms located in the central and western regions of China. Overall, we provide a timely assessment of the social value of digital finance in emerging countries like China from the new perspective of ESG.

Keywords: Digital finance; ESG; Financial constraints (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322006031

DOI: 10.1016/j.frl.2022.103426

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