The impact of digital transformation on firms’ value: examining the role of ESG performance and the effect of information interaction
Business Process Management Journal
ISSN: 1463-7154
Article publication date: 24 May 2024
Issue publication date: 11 June 2024
Abstract
Purpose
This study aims to examine the impact of digital transformation on firms’ value and explore the mediating impact of ESG performance and moderating impact of information interaction.
Design/methodology/approach
Data was collected from companies listed on the Shanghai and Shenzhen stock exchange between 2012 and 2020 with 21,488 observational samples, featuring a selection of 3,348 companies. Panel data regression techniques were used to test the mediating role of ESG performance and the moderating role of information interaction.
Findings
The study found that digital transformation can improve firms’ ESG performance, which in turn positively affects their value. The firms that engage in more interaction with outsiders benefit more from digital transformation and have a higher value.
Originality/value
This study provides new theoretical insight into improving firms’ value through digital transformation and ESG performance. It is the first to discuss and study the moderating role of information interaction in the relationship between digital transformation and firms’ value.
Keywords
Acknowledgements
This research received funding from the Bureau of Science and Technology Nanchong City (Project No.: 20YFZJ0109) and the Nanchong Federation of Social Science Associations (Project No.: NC24C171).
Citation
Wang, D. and Xia, X. (2024), "The impact of digital transformation on firms’ value: examining the role of ESG performance and the effect of information interaction", Business Process Management Journal, Vol. 30 No. 4, pp. 1236-1265. https://doi.org/10.1108/BPMJ-06-2023-0469
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited