How does fintech prompt corporations toward ESG sustainable development? Evidence from China

Jinxiu Ding, Lingxue Li and Jinsong Zhao

Energy Economics, 2024, vol. 131, issue C

Abstract: The rise of fintech and concerns over environmental, social and governance (ESG) practices with regard to corporate strategy represent two leading economic trends over recent years. This paper examines how the development of fintech affects corporate ESG practices in the context of emerging markets. We find that fintech development contributes to improving corporate ESG activities, and this finding is robust to a variety of quantitative extensions. We further identify two economic mechanisms, one is reduced cost of equity and increased equity and short-term loan issuance in both the equity and credit markets, the other is increased attention of stakeholders, which are the main channels through which fintech development boosts corporate ESG practices. Our research shed lights on how technological progress influences corporate organizations' long-term value behavior.

Keywords: Fintech; ESG; Financial constraints; Stakeholders' attention; Long-term value (search for similar items in EconPapers)
JEL-codes: C33 G21 O32 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988324000951
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:131:y:2024:i:c:s0140988324000951

DOI: 10.1016/j.eneco.2024.107387

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().