Digital transformation and manufacturing companies’ ESG responsibility performance

• Published in: Finance research letters 2023-12, Vol.58, p.104370, Article 104370
• Main Authors: Wang, Haijun, Jiao, Shuaipeng, Bu, Kun, Wang, Yebin, Wang, Yaxian
• Format: Article
• Language: English
• Subjects: Digital strategy; Digital transformation; ESG responsibility performance; Manufacturing companies
• ISSN: 1544-6123; 1544-6131
• DOI: 10.1016/j.frl.2023.104370

Digital transformation improves the efficiency and perception of companies. This paper investigates the impact of digital transformation in improving the environmental, social, and governance (ESG) responsibility performance of manufacturing companies in China. The results show that digital transformation can significantly improve manufacturing companies’ ESG responsibility performance. Every 1% increase in the degree of digital transformation will improve the ESG responsibility performance of manufacturing companies by 0.124%. Among the digital transformation techniques, digital strategy plays a more significant role than digital technology in improving manufacturing companies’ ESG responsibility performance. Total factor productivity, information transparency and investor stickiness moderate how digital transformation affects manufacturing companies’ ESG responsibility performance. The findings of this paper enrich and expand the research on the effects of digital transformation on manufacturing companies and provide a novel perspective to accelerate the progress of manufacturing companies worldwide in fulfilling ESG responsibilities and achieving global carbon emission reduction targets.