Big Data Infrastructure and Corporate ESG Performance: Evidence from Listed Chinese Manufacturing Companies

Minjuan Wang () and Dingsheng Zhang
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Minjuan Wang: China Economics and Management Academy, Central University of Finance and Economics, Beijing 100081, China
Dingsheng Zhang: China Economics and Management Academy, Central University of Finance and Economics, Beijing 100081, China

Sustainability, 2024, vol. 16, issue 12, 1-24

Abstract: This paper investigates the impact of big data on firms’ environmental, social, and governance (ESG) performance. We provide quasi-experimental estimates using a unique quasi-natural experiment: the national policy of introducing Big Data Pilot Zones (BDPZs) in Chinese cities. Our analysis exploits data on firm-level ESG performance with a standard difference-in-differences empirical strategy. We find that big data has a significant positive impact on corporate ESG performance. The effect is more prominent for companies in non-heavily polluting industries, with a lower level of digital transformation, and those not rigorously audited. Analysis of the mechanisms shows that big data enhances the transparency of corporate information. Facing external supervisory pressure, companies tend to enhance their ESG performance to mitigate reputational risks.

Keywords: big data; corporate ESG performance; transparency; external governance; green innovation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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