Do ESG-committed Firms Talk Less about Digital Transformation? Evidence from Australian Listed Companies

Nguyen Van Ky Long (), Thi Tuyet Anh Nguyen, Thi My Hanh Le and An Hai Vo
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Nguyen Van Ky Long: FPT University
Thi Tuyet Anh Nguyen: Central Queensland University
Thi My Hanh Le: FPT University
An Hai Vo: FPT University

A chapter in Proceedings of the International Conference on Sustainable Economics and Finance in the Digital Business Transformation (INCOSEF 2025）, 2026, pp 36-47 from Springer

Abstract: Abstract This study examines the relationship between firms’ environmental, social and governance performance and their disclosure of digital transformation in annual reports. Using a panel of 79 non-financial firms listed on the Australian Securities Exchange from 2014 to 2024, we construct a text-based digital transformation index and estimate two-way fixed effects models with Driscoll–Kraay robust standard errors. The results show a negative and statistically significant association between ESG performance and digital transformation disclosure, indicating that firms with stronger ESG commitment place less emphasis on communicating digital initiatives. This suggests a strategic substitution effect, where sustainability-oriented firms rely less on digital signaling in their corporate reporting. The study contributes to understanding how firms balance competing strategic domains in their disclosures, and provides insights for managers and policymakers regarding integrated approaches to sustainability and digital transformation disclosure.

Keywords: ESG; digital transformation; corporate disclosure; sustainability; text analysis; Australia (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-624-1_4

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