Can digital transformation enhance corporate ESG performance? The moderating role of dual environmental regulations

This research investigates the influence of digital transformation on corporate ESG performance, with emphasis on dual environmental regulations' moderating effects, using data from Chinese companies (2011–2020). The results show that digital transformation significantly boosts ESG performance, a finding that persists across various model specifications. The study highlights the amplifying role of both formal and informal environmental regulations in this dynamic, with informal regulations having a stronger effect. This work fills a gap in literature and suggests that environmental regulations are key in leveraging digital transformation for improved ESG outcomes, providing important policy insights.