Data driven-sustainability: The impact of data trading platforms on corporate ESG performance

Shilong Ge, Zhenyu Tu, Yalin Chen and Heap-Yih Chong

International Review of Financial Analysis, 2025, vol. 105, issue C

Abstract: Data elements serve as a crucial enabler for enterprise digital transformation, but their consequences for corporate sustainable performance are under-researched. Using the establishment of data trading platforms (DTPs) to measure data elements marketization, this paper explores the impact of DTPs on corporate environmental, social and governance (ESG) performance. Employing a staggered Difference-in-Differences method, the research uncovers that DTPs significantly promotes corporate ESG performance. In particular, DTPs significantly improves the environmental and governance pillars, but is less effect on the social pillar. DTPs improves ESG performance through digit effect, green innovation effect and stakeholders attention effect. Heterogeneity analyses show that the benefits of DTPs are more evident among large firms, state-owned firms, firms with green investors, firms in clean and low-carbon industries, and those located in cities with stringent environmental regulations, particularly in eastern regions. Finally, DTPs is shown to reduce corporate environmental pollution and carbon emissions, underscoring their role in promoting sustainable development. This research provides novel insights into how data elements can drive corporate ESG performance.

Keywords: Data elements marketization; Data trading platforms; ESG performance; Difference-in-differences; China (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:105:y:2025:i:c:s1057521925004582

DOI: 10.1016/j.irfa.2025.104371

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