Digital Transformation and Corporate ESG Performance: Nonlinear Dynamics, Heterogeneous Effects, and Threshold Mechanisms

Meng Liu; Linxin Guo; Tingqiang Chen

doi:10.2991/978-94-6239-830-6_27

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Digital Transformation and Corporate ESG Performance: Nonlinear Dynamics, Heterogeneous Effects, and Threshold Mechanisms

Authors

Meng Liu¹^{, *}, Linxin Guo², Tingqiang Chen¹

¹School of Economics and Management, Nanjing Tec University, Nanjing, 211816, Jiangsu, China

²School of Economics and Management, Chinese Academy of Sciences University, Beijing, 100086, China

^*Corresponding author. Email: 15850765259@163.com

Corresponding Author

Meng Liu

Available Online 14 November 2026.

DOI: 10.2991/978-94-6239-830-6_27 How to use a DOI?
Keywords: Digital transformation; ESG; Technological innovation; Labor share
Abstract: Existing evidence on its relationship with ESG performance remains fragmented and contradictory. This ambiguity stems from three unresolved challenges: the potential nonlinearity of the effect, the differential responses across ESG sub-dimensions (Environmental, Social, and Governance), and the conditional nature of the gains depending on firm-specific endowments. To address these, this study utilizes data from Chinese A-share listed firms and applies quadratic and threshold regression models. The findings reveal a U-shaped nonlinear enhancement of overall ESG scores, driven by accelerating improvements in E and S dimensions, while governance scores decline linearly due to transition costs and institutional inertia. The effects are heterogeneous across firm types, regions, pollution intensity, and ownership, and are conditioned by profitability thresholds. This study reconciles prior conflicting evidence and provides policy insights for optimizing ESG outcomes through targeted digital strategies.
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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Volume Title: Proceedings of the 6th International Conference on Internet Finance and Digital Economy (ICIFDE 2026)
Series: Advances in Economics, Business and Management Research
Publication Date: 14 November 2026
ISBN: 978-94-6239-830-6
ISSN: 2352-5428
DOI: 10.2991/978-94-6239-830-6_27 How to use a DOI?
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.

Cite this article

ris enw bib

TY  - CONF
AU  - Meng Liu
AU  - Linxin Guo
AU  - Tingqiang Chen
PY  - 2026
DA  - 2026/11/14
TI  - Digital Transformation and Corporate ESG Performance: Nonlinear Dynamics, Heterogeneous Effects, and Threshold Mechanisms
BT  - Proceedings of the 6th International Conference on Internet Finance and Digital Economy (ICIFDE 2026)
PB  - Atlantis Press
SP  - 320
EP  - 328
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-830-6_27
DO  - 10.2991/978-94-6239-830-6_27
ID  - Liu2026
ER  -

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