Digital government construction and corporate ESG performance: evidence from the “Internet + Government Services” pilot as a quasi-natural experiment

Abstract

Based on the “Internet + Government Services” pilot as a quasi-natural experiment, this paper examined the impact of digital government construction on corporate ESG performance. The study found that digital government construction contributes to the improvement of corporate ESG outcomes. Mechanism analyses suggest that digital government enhances corporate ESG performance primarily through four channels: promoting green technological innovation, upgrading human capital structures, reducing information asymmetry, and lowering agency costs. Further heterogeneity analyses reveal that the positive effect of digital government on corporate ESG performance is more pronounced among state-owned enterprises, firms with lower financing constraints, large-scale enterprises, and firms located in regions with higher levels of governmental environmental attention. The findings provide important implications for understanding how improvements in governmental digital governance capacity can foster corporate ESG practices in the digital era.