Assessing the Effects of Urban Digital Infrastructure on Corporate Environmental, Social and Governance (ESG) Performance: Evidence from the Broadband China Policy
Year: 2023
Type: article
Abstract: Urban digital infrastructure is the cornerstone of optimizing resource allocation and promoting sustainable economic development in the era of digital economy, and it will also affect corporate ESG performance. Based on the data of Chinese A-share listed companies from 2011 to 2021, an asymptotic difference-in-difference model is used to investigate the impact of urban digital infrastructure on corporate ESG performance based on the “broadband China” strategy and its underlying mechanism. This paper finds that urban digital infrastructure can promote corporate ESG performance. Further, urban digital infrastructure can contribute to corporate ESG performance by increasing research and development (R&D) investment, improving corporate governance, and increasing information transparency. Through heterogeneity analysis, the results show urban digital infrastructure contributes more significantly to the ESG performance of state-owned, small and medium, growth-stage, and low-profit companies and is more pronounced in non-heavy polluting companies and companies in the central and western regions. This paper has enhanced the theoretical framework of urban digital infrastructure and corporate ESG (environmental, social, and governance) performance, paving the way for a new approach to the collaborative development of cities and enterprises in pursuit of green and sustainable growth.
Source: Systems
Authors: Chenchen Zhai, Xinyi Ding, Xue Zhang, Shaoxiang Jiang, Yue Zhang, Chengming Li
Institutions: Minzu University of China, Peking University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,779
Awards: G2614627854, G4781405558, G7489701616
OpenAlex ID: W4387653860