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Corporate ESG Performance, Digitalization, and Human Capital Investment Efficiency: An Empirical Evidence from Chinese Firms

Year: 2025

Type: article

Abstract: This study explores the effect of environmental, social, and governance (ESG) performance and digitalization on human capital investment (HCI) efficiency in Chinese firms. Using data from 319 A-share market-listed Chinese firms for the period 2019-2023, the panel least square approach is used for the estimation. The empirical results show that ESG performance, alongside digitalization, company size, and stock prices, positively influences HCI efficiency in Chinese enterprises. Furthermore, the interaction between ESG performance and digitalization acts as a catalyst in the ESG-human capital relationship by enhancing labor training opportunities and skills driving technological advancements in corporate operations. The relationship between ESG performance and digitalization is multifaceted and dynamic; digitalization can improve ESG performance, while strong ESG performance supports digitalization. Together, these factors synergistically enhance HCI efficiency.

Source: Pakistan Journal of Humanities and Social Sciences

DOI: 10.52131/pjhss.2025.v13i1.2653

Authors: Ghulam Mustafa, Furrukh Bashir, Muhammad Atiq ur Rehman, Muhammad Hassan

Institutions: Minhaj University Lahore, Superior University, Capital University of Science and Technology

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W4407992420

FWCI: 1.832

Cites:

Cited by: 2

Related to: 10