Abstract

Drawing on panel data from A-share listed companies in China between 2015 and 2020, this study delves into the influence of Environmental, Social, and Governance (ESG) responsibility performance on the digital transformation process of enterprises. It further examines how research and development (R&D) investment moderates this relationship. By employing a difference-in-differences (DID) methodology alongside regression analysis, the results demonstrate that companies with stronger ESG performance experience a significantly accelerated digital transformation, with the effect being statistically significant at the 1% level. More specifically, the empirical findings highlight that firms engaging in higher ESG standards tend to enhance their ability to access and allocate key resources — both financial and human — more efficiently. This resource advantage, in turn, fosters greater adoption of digital technologies and innovation pathways. Notably, the moderating role of R&D investment proves to be substantial: as R&D spending increases, the positive impact of ESG on digital transformation is further amplified. This suggests a synergy between responsible corporate behavior and technological innovation. In light of these insights, the study underscores the strategic importance of embedding ESG practices into corporate governance structures and aligning them with innovation-oriented investments. To that end, it advocates for active corporate engagement in ESG initiatives, coupled with robust R&D strategies. Furthermore, the study calls on policymakers to formulate incentive mechanisms — such as tax reliefs, green financing channels, and ESG assessment systems — that can encourage ESG integration and catalyze innovation-driven sustainable development in the digital era.

Keywords: 

ESG responsibility performance, enterprise digital transformation, difference-in-differences (DID) model

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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