Data assets and corporate ESG performance: Evidence from Chinese listed companies

• This study reveals that data assets (overall, own-used, and transactional) improve both overall corporate ESG performance and its specific E, S, and G outcomes. • Data assets improve ESG with the channels of environment investment, R&D expenditure, operating cost ratio and media coverage. • Largest shareholder's ownership ratio, management ownership ratio, and the SA financing constraints index positively moderate data assets – ESG nexus. • Corporate supply chain concentration negatively moderates this relationship. • Data assets exert greater effects on high-leverage, large-sized, and manufacturing firms, as well as state-owned enterprises. Drawing on data from Chinese A-share listed companies (2009–2023), this study examines how data assets affect corporate ESG performance. The findings indicate that data assets significantly enhance both overall corporate ESG performance and its individual environmental, social, and governance (E, S, G) dimensions. Own-use data assets exert a stronger positive influence than their transactional counterparts. The research identifies four key channels through which data assets improve ESG: increasing environmental investment, boosting R&D expenditure, lowering the operating cost ratio, and attracting more media coverage. Additional analysis reveals that the effect of data assets is strengthened by higher ownership ratios of the largest shareholder and management, as well as higher SA financing constraints index (indicating lower financing constraint), but weakened by corporate supply chain concentration. The effect of data assets is found to be stronger for high-leverage, large-sized, and manufacturing firms, as well as state-owned enterprises.