How AI powers ESG performance in China's digital frontier?

Xukang Liu, Chaoqun Ma and Yi-Shuai Ren

Finance Research Letters, 2024, vol. 70, issue C

Abstract: This study investigates the effect of AI on corporate ESG performance using data from Chinese A-share listed firms from 2009–2022. The results indicate that AI enhances corporate R&D investment and the degree of digital transformation, therefore improving ESG performance. The driving effect of AI on ESG performance is more pronounced in firms located in provinces with greater digital financial inclusion. Our findings are robust. This study underscores the importance of AI development in enhancing corporate ESG performance, offering both theoretical support and practical recommendations for establishing a greener and sustainable economic system in China's digital frontier.

Keywords: Artificial intelligence; ESG performance; Digital transformation; Corporate innovation (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013539

DOI: 10.1016/j.frl.2024.106324

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