Can Digital Transformation Restrain Corporate ESG Greenwashing—A Test Based on Internal and External Joint Perspectives

Digital technology has the function of information governance, and digital transformation of enterprises may be the key way to identify and restrain ESG greenwashing. Based on the theory of digital empowerment, this study analyzes the influence and mechanism of digital transformation on restraining corporate green washing behavior from the perspective of internal and external factors. This study takes A-share listed companies in 2012–2022 as research samples and tests the effectiveness of digital transformation. Research has found that (1) digital transformation can significantly suppress corporate greenwashing behavior, and this conclusion still holds after a series of endogeneity and robustness tests. (2) In the context of high environmental awareness among executives, the inhibitory effect of digital transformation on corporate ESG greenwashing is more pronounced. (3) Mechanism analysis shows that digital transformation has inhibited the company’s greenwashing behavior by increasing the attention of investors. (4) Heterogeneity analysis shows that in state-owned enterprises, non-heavily polluting industries, high-tech industries, and enterprises located in the eastern region digital transformation has a more effective inhibitory effect on corporate greenwashing behavior. This study examines the impact of digital transformation on corporate ESG greenwashing, expands the research on the non-economic effects of digital transformation, and may provide empirical evidence for improving the quality of ESG information disclosure and sustainable development of enterprises.