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Academic Journal of Business & Management, 2023, 5(23); doi: 10.25236/AJBM.2023.052318.

A Study on the Impact of Commercial Banks' Digital Transformation on ESG Performance—Based on Empirical Evidence from Listed Banks in China

Author(s)

Xuan Guo

Corresponding Author:
Xuan Guo
Affiliation(s)

East China University of Political Science and Law, Shanghai, 201620, China

Abstract

ESG has become a crucial means for commercial banks to seamlessly integrate economic, social, and ecological benefits. With the rapid advancement of digital technology, studying the impact of bank digital transformation on ESG performance holds practical significance. This paper utilizes panel data from 26 listed Chinese banks spanning from 2010 to 2021, along with Bloomberg ESG Ratings and the China Commercial Bank Digital Transformation Index constructed by Peking University, to research the influence of commercial bank digital transformation on ESG performance. The study also explores the moderating effect of bank sentiment. Results indicate that digital transformation in commercial banks has a positive effect on ESG performance, while bank sentiment weakens this promotion effect. Based on these findings, the paper proposes relevant policy recommendations to drive bank digital transformation, enhance the ESG rating system, and leverage digitization for improved ESG performance.

Keywords

Commercial banks; Digital transformation; ESG; Bank sentiment

Cite This Paper

Xuan Guo. A Study on the Impact of Commercial Banks' Digital Transformation on ESG Performance—Based on Empirical Evidence from Listed Banks in China. Academic Journal of Business & Management (2023) Vol. 5, Issue 23: 119-124. https://doi.org/10.25236/AJBM.2023.052318.

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