The effect of the big data pilot zone on corporate ESG performance: evidence from China

With the in-depth development of the digital economy, how to empower corporate sustainability by digital technology has become an important topic. Using the establishment of China’s National Big Data Comprehensive Pilot Zone (NBDCPZ) as a quasi-natural experiment, this article examines the causal effect of the pilot zone policy on corporate ESG performance based on the data of A-share listed companies from 2010 to 2023. We find that the NBDCPZ policy significantly improves corporate ESG performance within the zones. Mechanism tests reveal that the NBDCPZ enhances ESG performance by alleviating information asymmetry and promoting green innovation, and generates an additive effect through the chain mediation between these two channels. Further heterogeneity analysis shows that the ESG enhancement effect is more significant in high-tech industries, under higher public environmental concern and tighter financing constraints, for non-state-owned enterprises, as well as in regions with better digital infrastructure and cross-regional pilot zones. Moreover, the ESG improvement induced by the policy also helps firms create multi-dimensional value in both the capital market and the product market. This study provides fresh empirical evidence on how the digital economy fosters sustainable corporate practices, offering a basis for ESG-oriented digital governance.