The Impact of Market Uncertainty on ESG Performance: Digital Transformation as a Moderator in Chinese Technology Firms

This study examines the relationship between stock market uncertainty and environmental, social, and governance (ESG) performance among Chinese technology firms, with digital transformation serving as a moderating variable. Using panel data from 5,680 firm-year observations between 2015 and 2022, we find that market uncertainty negatively affects ESG performance. However, firms with higher levels of digital transformation demonstrate greater resilience to uncertainty, mitigating its negative impact on ESG initiatives. The findings contribute to the literature on ESG determinants in emerging markets and provide practical implications for corporate strategy during periods of heightened market uncertainty.