The impact of environmental, social, and governance (ESG) practices on investment efficiency in China: Does digital transformation matter?

Research in International Business and Finance - Tập 66 - Trang 102050 - 2023
Yongjia Lin1, Zhenye Lu1, Yizhi Wang2
1School of Business, Macau University of Science and Technology, Macau, China
2School of Finance, Shandong University of Finance and Economics, Jinan, China

Tài liệu tham khảo

Agarwal, 2010, Research commentary—The digital transformation of healthcare: Current status and the road ahead, Inf. Syst. Res., 21, 796, 10.1287/isre.1100.0327 Ahmed, 2006, The effects of board composition and board size on the informativeness of annual accounting earnings, Corp. Gov.: Int. Rev., 14, 418, 10.1111/j.1467-8683.2006.00515.x Akerlof, 1978, The market for “lemons”: Quality uncertainty and the market mechanism, 235 Allen, 2005, Law, finance, and economic growth in China, J. Financ. Econ., 77, 57, 10.1016/j.jfineco.2004.06.010 Amin, 2020, It’s who you know that counts: Board connectedness and CSR performance, J. Corp. Finance, 64, 10.1016/j.jcorpfin.2020.101662 Bae, 2017, Auditors and client investment efficiency, Account. Rev., 92, 19, 10.2308/accr-51530 Baldini, 2018, Role of country-and firm-level determinants in environmental, social, and governance disclosure, J. Bus. Ethics, 150, 79, 10.1007/s10551-016-3139-1 Balsmeier, 2019, Is this time different? How digitalization influences job creation and destruction, Res. Policy, 48, 10.1016/j.respol.2019.03.010 Behl, 2022, Exploring the relationship of ESG score and firm value using cross-lagged panel analyses: Case of the Indian energy sector, Ann. Oper. Res., 313, 231, 10.1007/s10479-021-04189-8 Benlemlih, 2018, Corporate social responsibility and investment efficiency, J. Bus. Ethics, 148, 647, 10.1007/s10551-016-3020-2 Bhandari, 2017, Corporate social responsibility and capital allocation efficiency, J. Corp. Finance, 43, 354, 10.1016/j.jcorpfin.2017.01.012 Biddle, 2009, How does financial reporting quality relate to investment efficiency?, J. Account. Econ., 48, 112, 10.1016/j.jacceco.2009.09.001 Bloom, 2014, The distinct effects of information technology and communication technology on firm organization, Manage. Sci., 60, 2859, 10.1287/mnsc.2014.2013 Borghesi, 2014, Corporate socially responsible investments: CEO altruism, reputation, and shareholder interests, J. Corp. Finance, 26, 164, 10.1016/j.jcorpfin.2014.03.008 Broadstock, 2020, Does corporate social responsibility impact firms’ innovation capacity? the indirect link between environmental & social governance implementation and innovation performance, J. Bus. Res., 119, 99, 10.1016/j.jbusres.2019.07.014 Chen, 2017, Do state and foreign ownership affect investment efficiency? Evidence from privatizations, J. Corp. Finance, 42, 408, 10.1016/j.jcorpfin.2014.09.001 Chen, 2017, How does analysts’ forecast quality relate to corporate investment efficiency?, J. Corp. Finance, 43, 217, 10.1016/j.jcorpfin.2016.12.010 Chen, 2022, Can digital transformation improve the information environment of the capital market? Evidence from the analysts’ prediction behaviour, Account. Finance, 62, 2543, 10.1111/acfi.12873 Cohen, 1990, Absorptive capacity: A new perspective on learning and innovation, Adm. Sci. Q., 128, 10.2307/2393553 Cook, 2019, The influence of corporate social responsibility on investment efficiency and innovation, J. Bus. Finance Account., 46, 494, 10.1111/jbfa.12360 Deng, 2013, Corporate social responsibility and stakeholder value maximization: Evidence from mergers, J. Financ. Econ., 110, 87, 10.1016/j.jfineco.2013.04.014 DeStefano, 2018, Broadband infrastructure, ICT use and firm performance: evidence for UK firms, J. Econ. Behav. Organ., 155, 110, 10.1016/j.jebo.2018.08.020 Dhaliwal, 2012, Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure, Account. Rev., 87, 723, 10.2308/accr-10218 Diamond, 1991, Disclosure, liquidity, and the cost of capital, J. Finance, 46, 1325, 10.1111/j.1540-6261.1991.tb04620.x Duque-Grisales, 2021, Environmental, social and governance (ESG) scores and financial performance of multilatinas: Moderating effects of geographic international diversification and financial slack, J. Bus. Ethics, 168, 315, 10.1007/s10551-019-04177-w El Ghoul, 2017, Country-level institutions, firm value, and the role of corporate social responsibility initiatives, J. Int. Bus. Stud., 48, 360, 10.1057/jibs.2016.4 El Ghoul, 2011, Does corporate social responsibility affect the cost of capital?, J. Bank. Financ., 35, 2388, 10.1016/j.jbankfin.2011.02.007 Eliwa, 2021, ESG practices and the cost of debt: Evidence from EU countries, Crit. Perspect. Account., 79, 10.1016/j.cpa.2019.102097 Fan, 2021, Does ICT development curb firms’ perceived corruption pressure? The contingent impact of institutional qualities and competitive conditions, J. Bus. Res., 135, 496, 10.1016/j.jbusres.2021.06.062 Fang, 2023, Can enterprise digitization improve ESG performance?, Econ. Model., 118, 10.1016/j.econmod.2022.106101 Fitzgerald, 2014, Embracing digital technology: A new strategic imperative, MIT Sloan Manag. Rev., 55, 1 Fleming, 2005, Agency costs and ownership structure in Australia, Pac.-Basin Finance J., 13, 29, 10.1016/j.pacfin.2004.04.001 Forman, 2019, Digital technology adoption and knowledge flows within firms: Can the internet overcome geographic and technological distance?, Res. Policy, 48, 10.1016/j.respol.2018.10.021 Freeman, 1984 Gao, 2014, Commitment to social good and insider trading, J. Account. Econ., 57, 149, 10.1016/j.jacceco.2014.03.001 Gao, 2021, Media coverage and investment efficiency, J. Empir. Financ., 63, 270, 10.1016/j.jempfin.2021.07.002 He, 2022, Corporate ESG performance and manager misconduct: Evidence from China, Int. Rev. Financ. Anal., 82, 10.1016/j.irfa.2022.102201 Heckman, 1979, Sample selection bias as a specification error, Econometrica, 47, 153, 10.2307/1912352 Hoi, 2013, Is corporate social responsibility (CSR) associated with tax avoidance? Evidence from irresponsible CSR activities, Account. Rev., 88, 2025, 10.2308/accr-50544 Iansiti, 2014, Digital ubiquity:: How connections, sensors, and data are revolutionizing business, Harv. Bus. Rev., 92, 19 Jensen, 2002, Value maximization, stakeholder theory, and the corporate objective function, Bus. Ethics Q., 12, 235, 10.2307/3857812 Jensen, 1976, Theory of the firm: Managerial behavior, agency costs and ownership structure, J. Financ. Econ., 3, 305, 10.1016/0304-405X(76)90026-X Jiang, 2022, Firms’ digitalization and stock price crash risk, Int. Rev. Financ. Anal., 82, 10.1016/j.irfa.2022.102196 Jiang, 2010, Tunneling through intercorporate loans: The China experience, J. Financ. Econ., 98, 1, 10.1016/j.jfineco.2010.05.002 Jiraporn, 2014, Does corporate social responsibility (CSR) improve credit ratings? evidence from geographic identification, Financial Manag., 43, 505, 10.1111/fima.12044 Jo, 2011, Corporate governance and firm value: The impact of corporate social responsibility, J. Bus. Ethics, 103, 351, 10.1007/s10551-011-0869-y Jung, 2018, Carbon risk, carbon risk awareness and the cost of debt financing, J. Bus. Ethics, 150, 1151, 10.1007/s10551-016-3207-6 Klassen, 1996, The impact of environmental management on firm performance, Manage. Sci., 42, 1199, 10.1287/mnsc.42.8.1199 Klein, 2004, Corporate social responsibility and consumers’ attributions and brand evaluations in a product–harm crisis, Int. J. Res. Mark., 21, 203, 10.1016/j.ijresmar.2003.12.003 Kutner, 2004 Larcker, 2010, On the use of instrumental variables in accounting research, J. Account. Econ., 49, 186, 10.1016/j.jacceco.2009.11.004 Li, 2018, The impact of environmental, social, and governance disclosure on firm value: The role of CEO power, Br. Account. Rev., 50, 60, 10.1016/j.bar.2017.09.007 Li, 2021, Organizational mindfulness towards digital transformation as a prerequisite of information processing capability to achieve market agility, J. Bus. Res., 122, 700, 10.1016/j.jbusres.2019.10.036 Lin, 2021, Varieties in state capitalism and corporate innovation: Evidence from an emerging economy, J. Corp. Finance, 67, 10.1016/j.jcorpfin.2021.101919 Lin, 2021, Corporate social responsibility and investment efficiency: Does business strategy matter?, Int. Rev. Financ. Anal., 73, 10.1016/j.irfa.2020.101585 Lin, 2022, How does digital finance influence green technology innovation in China? Evidence from the financing constraints perspective, J. Environ. Manag., 320, 10.1016/j.jenvman.2022.115833 Liu, 2023, Firms’ digitalization in manufacturing and the structure and direction of green innovation, J. Environ. Manag., 335, 10.1016/j.jenvman.2023.117525 Lv, 2022, Can FinTech improve corporate investment efficiency? Evidence from China, Res. Int. Bus. Finance, 60, 10.1016/j.ribaf.2021.101571 Matos, 2020 McElheran, 2014, Delegation in multi-establishment firms: Evidence from it purchasing, J. Econ. Manag. Strategy, 23, 225, 10.1111/jems.12054 McNichols, 2008, Does earnings management affect firms’ investment decisions?, Account. Rev., 83, 1571, 10.2308/accr.2008.83.6.1571 Modigliani, 1958, The cost of capital, corporation finance and the theory of investment, Am. Econ. Rev., 48, 261 Mutascu, 2023, Good or bad? Digitalisation and green preferences, Energy Econ., 121, 10.1016/j.eneco.2023.106640 Paiola, 2020, Internet of things technologies, digital servitization and business model innovation in BtoB manufacturing firms, Ind. Mark. Manag., 89, 245, 10.1016/j.indmarman.2020.03.009 Park, 2014, Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers’ perspectives, J. Bus. Res., 67, 295, 10.1016/j.jbusres.2013.05.016 Pava, 1997, Criteria for evaluating the legitimacy of corporate social responsibility, J. Bus. Ethics, 16, 337, 10.1023/A:1017920217290 Preston, 1997, The corporate social-financial performance relationship: A typology and analysis, Bus. Soc., 36, 419, 10.1177/000765039703600406 Price, 2017, Doing good and doing bad: The impact of corporate social responsibility and irresponsibility on firm performance, J. Bus. Res., 80, 82, 10.1016/j.jbusres.2017.07.007 Reber, 2022, ESG disclosure and idiosyncratic risk in initial public offerings, J. Bus. Ethics, 179, 867, 10.1007/s10551-021-04847-8 Roberts, 2013, Endogeneity in empirical corporate finance, Vol. 2, 493, 10.1016/B978-0-44-453594-8.00007-0 Russo, 2005, Organizational design and environmental performance: Clues from the electronics industry, Acad. Manag. J., 48, 582, 10.5465/amj.2005.17843939 Saeidi, 2015, How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction, J. Bus. Res., 68, 341, 10.1016/j.jbusres.2014.06.024 Siebel, 2019 Stein, 2003, Agency, information and corporate investment, Vol. 1, 111, 10.1016/S1574-0102(03)01006-9 Sun, 2002, How does government ownership affect firm performance? Evidence from China’s privatization experience, J. Bus. Finance Account., 29, 1, 10.1111/1468-5957.00422 Suppatvech, 2019, The roles of internet of things technology in enabling servitized business models: A systematic literature review, Ind. Mark. Manag., 82, 70, 10.1016/j.indmarman.2019.02.016 Tang, 2012, How corporate social responsibility engagement strategy moderates the CSR–financial performance relationship, J. Manag. Stud., 49, 1274, 10.1111/j.1467-6486.2012.01068.x Tarn, 2002, Exploring the rationales for ERP and SCM integration, Ind. Manag. Data Syst., 102, 26, 10.1108/02635570210414631 Tobin, 1969, A general equilibrium approach to monetary theory, J. Money Credit Bank., 1, 15, 10.2307/1991374 Verhoef, 2021, Digital transformation: A multidisciplinary reflection and research agenda, J. Bus. Res., 122, 889, 10.1016/j.jbusres.2019.09.022 Verrecchia, 1983, Discretionary disclosure, J. Account. Econ., 5, 179, 10.1016/0165-4101(83)90011-3 Verrecchia, 2001, Essays on disclosure, J. Account. Econ., 32, 97, 10.1016/S0165-4101(01)00025-8 Waddock, 1997, The corporate social performance–financial performance link, Strateg. Manag. J., 18, 303, 10.1002/(SICI)1097-0266(199704)18:4<303::AID-SMJ869>3.0.CO;2-G Wang, 2021, How digitalization affects the effectiveness of turnaround actions for firms in decline, Long Range Plan., 10.1016/j.lrp.2021.102140 Wen, 2022, Digitalization, competition strategy and corporate innovation: Evidence from Chinese manufacturing listed companies, Int. Rev. Financ. Anal., 82, 10.1016/j.irfa.2022.102166 Yu, 2010, Evaluating the cross-efficiency of information sharing in supply chains, Expert Syst. Appl., 37, 2891, 10.1016/j.eswa.2009.09.048 Zeng, 2022, The financial effect of firm digitalization: evidence from China, Technol. Forecast. Soc. Change, 183, 10.1016/j.techfore.2022.121951 Zhai, 2022, Does digital transformation enhance a firm’s performance? Evidence from China, Technol. Soc., 68, 10.1016/j.techsoc.2021.101841 Zhang, 2021, Can CSR disclosure protect firm reputation during financial restatements?, J. Bus. Ethics, 173, 157, 10.1007/s10551-020-04527-z Zhao, 2021, Board network, investment efficiency, and the mediating role of CSR: Evidence from China, Int. Rev. Econ. Finance, 76, 897, 10.1016/j.iref.2021.08.005 Zhao, 2019, The impact of corporate social responsibility on financial constraints: Does the life cycle stage of a firm matter?, Int. Rev. Econ. Finance, 63, 76, 10.1016/j.iref.2018.08.010 Zhong, 2023, Independent and joint effects of CSR and CSI on the effectiveness of digital transformation for transition economy firms, J. Bus. Res., 156, 10.1016/j.jbusres.2022.113478