Abstract
This study investigates the effect of digital finance on corporate environment, social and governance (ESG). Using a large sample of Chinese listed firms over the period 2011–2020, we find that digital finance positively affects corporate ESG performance, which remains robust after a series of robustness checks. We also find that digital finance enhances the ESG by mitigating corporate financial constraints. In addition, the positive effect of digital finance on corporate ESG performance is more pronounced in non-state-owned firms, small-sized firms, firms with lower level of marketization, and firms located in the central and western regions of China. Overall, we provide a timely assessment of the social value of digital finance in emerging countries like China from the new perspective of ESG.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
