Does natural resource dependence influence the impact of financial technologies on corporate ESG and digital governance in China's listed enterprises?

Abstract

In recent years, the concept of ESG has emerged globally and received widespread attention. In theory, financial technology in resource-dependent regions is expected to contribute to the development of corporate ESG. However, this has yet to be verified. This article selects 16,146 A-share listed companies in China as research samples from 2009 to 2019 and empirically analyzes the relationship between financial technology, natural resource dependence (Nrd), and ESG. The study shows that FinTech enhances corporate ESG, while Nrd constrains FinTech's enhancement impact on corporate ESG. This conclusion still holds after the endogeneity test and robustness test. Besides, Nrd constrains FinTech's effect on ESG in small and medium-sized enterprises (SMEs), state-owned enterprises, firms in the Middle East, and heavily polluting industries. FinTech can impact corporate ESG by easing financing constraints and driving digital transformation. This study provides a rationale for the rapid development and broad application of FinTech and digital governance in companies' drive for sustainable development.