Research Seminar «Empirical Research in Corporate Finance»

01/24/2025 16:0 online Research Seminar «Empirical Research in Corporate Finance»

Yanfei Wu, a doctoral student HSE Doctoral School of Economics. Academic Supervisor: Irina Ivashkovskaya

Theme: Synergistic Effect of Digital and ESG Transformation on Corporate Performance

Abstract: Amid rapid technological advancements and escalating environmental challenges, emerging economies face pressures to balance economic transformation with environmental responsibility. In response, Chinese enterprises have actively implemented digital transformation (DT) and green transition strategies to address these challenges. However, whether these twin transitions are mutually supportive or conflict in certain dimensions remains an open question. This dissertation investigates the synergies between DT and Environmental, Social, and Governance (ESG) practices on corporate performance, focusing on Chinese enterprises. Empirical results reveal that DT negatively impacts financial performance and green innovation in Chinese firms, with financing constraints acting as a critical mediating mechanism. ESG practices, on the other hand, mitigate these challenges by enhancing corporate reputation, optimizing resource allocation, alleviating financial pressures, and aligning short-term priorities with long-term sustainability goals. This research introduces the concept of the “crowding-out effect,” where DT investments divert resources away from green innovation, and highlights the dual role of ESG as both an external regulatory mechanism and an internal governance tool in moderating this conflict. Furthermore, this study develops a quantitative framework for the novel concept of “New Quality Productivity” (NQP), illustrating how DT and ESG not only address each other’s challenges but also enhance their mutual efficiency and quality, driving sustainable, innovation-driven productivity. Lastly, the dissertation explores the potential of artificial intelligence (AI) to enhance ESG performance and examines the moderating role of external supervision in this relationship, providing new insights from how this digital frontier can advance sustainable development. This research offers a comprehensive framework for understanding the interplay between technological advancements and sustainability, delivering actionable insights for enterprises and policymakers to promote sustainable growth and innovation.

Working language: English

Zoom link: https://zoom.us/j/98418675653?pwd=me851LHeRowFeHNaKAc4h2BkBhosUt.1
Conference ID: 984 1867 5653
Access Code: 929414

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Date

April 01 16:00

About

Corporate Finance Center, School of Finance

About persons

Yanfei Wu