Digital transformation and ESG performance: The chain mediating role of technological innovation and financing constraints

Jian Xu and Jian Yin

Finance Research Letters, 2025, vol. 71, issue C

Abstract: This paper aims to examine the impact of corporate digital transformation on environmental, social, and governance (ESG) performance of Chinese listed enterprises during 2018–2022. We also explore the chain mediating role of technological innovation and financing constraints. The paper suggests a positive relationship between digital transformation and ESG performance, and this impact is more prominent in private-owned enterprises, in large enterprises, and in high-tech and heavy-polluted industries. In addition, technological innovation and financing constraints have a chain mediating role in the influence of digital transformation on ESG performance. The findings will aid companies in improving ESG performance and achieving digital maturity.

Keywords: Digital transformation; ESG performance; Technological innovation; Financing constraints; Chain mediating effect (search for similar items in EconPapers)
JEL-codes: D21 D63 M14 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014168

DOI: 10.1016/j.frl.2024.106387

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