PBESProceedings of Business and Economic Studies2209-26412209-265XBio-Byword Scientific Publishing Pty. Ltd.10.26689/pbes.v9i2.14153ArticleCorporate Digital Transformation Improves ESG Performance in Chinahttps://artdesignp.com/journal/PBES/9/2/10.26689/pbes.v9i2.14153ChenJingwen,YinQian,FanSuqing,FanBichen2026922026-03-11Under the digital economy background and “dual-carbon” goals, digital transformation is a critical approach for companies to reach a high-quality development. This study analyzes the relationship between digital transformation and corporate Environmental, Social, and Governance (ESG) performance, using digital transformation decision-making data extracted via Python text analysis. A fixed-effects model is utilized to examine if there is a postive effect between corporate digital transformation and ESG performance with panel data from China’s A-share listed companies from 2013 to 2021, including its mechanisms and pathways. Although a few research have revealed the active relationship in this field, the validity of data source is from Bloomberg more, but less from Huazheng database which is specialised for Chinese enterprises. The research yields the following findings: Firstly, digital transformation in listed companies significantly enhances ESG performance and the conclusions remain valid after conducting robust tests including variable substitution. Secondly, digital transformation enhances corporate ESG performance by easing financing constraints and boosting innovation capabilities. Thirdly, state-owned enterprise and large corporations both exert positive pronounced effects. These findings are conducive for managers to better decision-making.

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