Understanding the Relationship Between Digital Transformation and ESG Performance Digital transformation (DT) has become a key strategy for businesses across industries, aiming to improve their operational efficiency, customer experience, and overall competitiveness. While numerous studies have highlighted the positive impact of DT on business performance, a recent study provides a different perspective, exploring the impact of DT on Environmental, Social, and Governance (ESG) performance of Chinese enterprises. Interestingly, the research reveals that DT may actually decrease ESG performance. According to the study, the effect of DT on ESG performance yielded a negative impact coefficient of -0.013, indicating that enterprises undergoing digital transformation might experience a reduction in their ESG performance. The research further elaborates on the suppression effect of DT on Accrued Earnings Management (AEM) and its inhibitory effect on ESG performance. This suggests that while DT might empower a company’s sustainable development capability, it might also impair certain aspects of their ESG performance. The Mechanisms and Factors Influence ESG Performance Despite the potential negative impact of DT on ESG performance, the study identifies six configuration paths that can drive ESG performance. These configurations can serve as a guide for enterprises, helping them to strategically apply DT in ways […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
