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Digital transformation and manufacturing companies’ ESG responsibility performance

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Listed:
  • Wang, Haijun
  • Jiao, Shuaipeng
  • Bu, Kun
  • Wang, Yebin
  • Wang, Yaxian

Abstract

Digital transformation improves the efficiency and perception of companies. This paper investigates the impact of digital transformation in improving the environmental, social, and governance (ESG) responsibility performance of manufacturing companies in China. The results show that digital transformation can significantly improve manufacturing companies’ ESG responsibility performance. Every 1% increase in the degree of digital transformation will improve the ESG responsibility performance of manufacturing companies by 0.124%. Among the digital transformation techniques, digital strategy plays a more significant role than digital technology in improving manufacturing companies’ ESG responsibility performance. Total factor productivity, information transparency and investor stickiness moderate how digital transformation affects manufacturing companies’ ESG responsibility performance. The findings of this paper enrich and expand the research on the effects of digital transformation on manufacturing companies and provide a novel perspective to accelerate the progress of manufacturing companies worldwide in fulfilling ESG responsibilities and achieving global carbon emission reduction targets.

Suggested Citation

  • Wang, Haijun & Jiao, Shuaipeng & Bu, Kun & Wang, Yebin & Wang, Yaxian, 2023. "Digital transformation and manufacturing companies’ ESG responsibility performance," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007420
    DOI: 10.1016/j.frl.2023.104370
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    References listed on IDEAS

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    Cited by:

    1. Tian, Lichuan & Sun, Kai & Yang, Jie & Zhao, Yang, 2024. "Does digital economy affect corporate ESG performance? New insights from China," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 964-980.
    2. Ma, Defang & Wang, Mengkai & Zeng, Bo & Jiang, Hong, 2024. "Peer effects of firm environmental protection expenditures," Finance Research Letters, Elsevier, vol. 65(C).
    3. Lan, Lan & Zhou, Zhifang, 2024. "Complementary or substitutive effects? The duality of digitalization and ESG on firm's innovation," Technology in Society, Elsevier, vol. 77(C).
    4. Yang, Jie & Ying, Limeng & Xu, Xiaofang, 2024. "Digital transformation and accounting information comparability," Finance Research Letters, Elsevier, vol. 61(C).
    5. Huňady Ján & Pisár Peter & Khawaja Sarwar & Qureshi Fayyaz Hussain, 2024. "The Digital Transformation of European Union Countries before and during COVID-19," Business Systems Research, Sciendo, vol. 15(1), pages 22-45.
    6. Wang, Haijun & Jiao, Shuaipeng & Ma, Chao, 2024. "The impact of ESG responsibility performance on corporate resilience," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 1115-1129.
    7. Zheng, Deyuan & Song, Hang & Zhao, Chunguang & Liu, Yujiao & Zhao, Wenhao, 2024. "Is it possible for semiconductor companies to reduce carbon emissions through digital transformation? Evidence from China," International Journal of Production Economics, Elsevier, vol. 272(C).

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    More about this item

    Keywords

    Digital transformation; ESG responsibility performance; Manufacturing companies; Digital strategy;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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