The impact of digital transformation of enterprises on ESG performance

In the context of a new technological revolution, companies are rapidly advancing their digital development, making digital transformation a key strategic approach for economic activities. This paper empirically examines the impact of digital transformation on the ESG performance of publicly listed companies and explores the underlying mechanisms. The findings reveal that digital transformation significantly improves ESG performance. Moreover, this positive effect is more pronounced in firms with high-quality internal controls and low financing constraints. The study also analyzes the differentiated effects of digital transformation on ESG performance based on factors such as ownership structure, profitability, and temporal variations across different samples. Robustness checks and endogeneity analyses confirm the validity of these results. By integrating digital transformation and ESG performance into a cohesive analytical framework, this paper contributes to existing research and provides valuable recommendations for future studies.