Abstract

ABSTRACT Currently, green innovation shows increasing uncertainty, and the connotation of firm development has been undergoing profound changes. Accordingly, this study attempts to investigate the effect of digital technology on ESG performance and its mechanism of action, and the analysis is tested using data from Chinese-listed firms from 2011 to 2019. Empirical studies from China suggest that digital technology is capable of significantly enhancing ESG performance. As revealed by the mechanism analysis, regional environmental regulation and regional green innovation can significantly increase the effect of digital technology.

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