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How AI powers ESG performance in China's digital frontier?

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  • Liu, Xukang
  • Ma, Chaoqun
  • Ren, Yi-Shuai

Abstract

This study investigates the effect of AI on corporate ESG performance using data from Chinese A-share listed firms from 2009–2022. The results indicate that AI enhances corporate R&D investment and the degree of digital transformation, therefore improving ESG performance. The driving effect of AI on ESG performance is more pronounced in firms located in provinces with greater digital financial inclusion. Our findings are robust. This study underscores the importance of AI development in enhancing corporate ESG performance, offering both theoretical support and practical recommendations for establishing a greener and sustainable economic system in China's digital frontier.

Suggested Citation

  • Liu, Xukang & Ma, Chaoqun & Ren, Yi-Shuai, 2024. "How AI powers ESG performance in China's digital frontier?," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013539
    DOI: 10.1016/j.frl.2024.106324
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