The impact of environmental, social, and governance (ESG) practices on investment efficiency in China: Does digital transformation matter?

Yongjia Lin, Zhenye Lu and Yizhi Wang

Research in International Business and Finance, 2023, vol. 66, issue C

Abstract: This paper examines whether environmental, social, and governance (ESG) practices affect firm investment efficiency and further discusses how digital transformation (DT) plays a significant role in this relationship in the context of China’s rapidly growing digital economy. The result suggests that ESG practices enhance firm investment efficiency by mitigating information asymmetries and agency conflicts. We also show that the positive relationship between ESG practices and firms’ investment efficiency is more pronounced for firms with high levels of DT.

Keywords: ESG practices; Investment efficiency; Digital transformation (search for similar items in EconPapers)
JEL-codes: G23 G34 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531923001769
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:riibaf:v:66:y:2023:i:c:s0275531923001769

DOI: 10.1016/j.ribaf.2023.102050

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().