Study based on managerial compensation incentives and analyst attention perspectives of corporate digital transformation and sustainability performance

Based on a sample of A-share listed companies in China from 2012 to 2022, this study empirically examines the relationship between digital transformation and corporate sustainability performance. Adopting a dual perspective of internal incentives and external governance, it explores how digital transformation enhances corporate sustainability performance through executive compensation incentives and analyst attention. Regression results indicate that digital transformation improves corporate sustainability performance, with findings remaining robust after endogeneity and stability tests. Heterogeneity analysis reveals that the impact of digital transformation on sustainability performance is more pronounced in eastern regions and among non-growth-stage enterprises. These conclusions illuminate the mechanisms through which digital transformation influences sustainability performance and provide empirical evidence for promoting corporate adoption of digitalisation to enhance sustainability outcomes.