Mechanism Analysis of Digital Finance Empowering ESG Investment Driven by Information Disclosure Improvement and Capital Allocation Efficiency Enhancement

DOI

10.2991/978-94-6239-801-6_6How to use a DOI?

Keywords

Digital Finance; ESG Investment; Information Asymmetry; Fintech; Sustainable Finance

Abstract

In recent times, environmental, social, and governance (ESG) investment has grown fast because more investors are incorporating sustainability considerations into financial decision-making. This growth is from both regulation and demand for open and responsible money use. Against this background, this article examines how digital finance promotes ESG investment by improving information disclosure, facilitating capital allocation, and enhancing investment decision-making efficiency. This study adopts a structured literature review approach and draws on recent empirical research showing that digital technologies reduce information asymmetry and improve capital allocation. From prior research, digital finance will greatly diminish the occurrence of financial disjunction and increase the use of resources, and improvement of digital finance can also improve the efficiency and risk management of financial institutions. Evidence points to green investors helping reduce ESG rating difference by cutting down info gap between firms and rating companies. In short, digital finance becomes an important enabler infrastructure for expanding ESG investment and developing sustainable finance.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Chenghao Su
PY  - 2026
DA  - 2026/10/23
TI  - Mechanism Analysis of Digital Finance Empowering ESG Investment Driven by Information Disclosure Improvement and Capital Allocation Efficiency Enhancement
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 42
EP  - 50
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_6
DO  - 10.2991/978-94-6239-801-6_6
ID  - Su2026
ER  -