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.
Citation: Guangming Lv, Shuangshuang Xiao. Digital government construction and corporate ESG performance: evidence from the "Internet + Government Services" pilot as a quasi-natural experiment[J]. Green Finance, 2026, 8(2): 298-325. doi: 10.3934/GF.2026011
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.
| [1] |
Awan U, Shamin S, Khan Z, et al. (2021) Big data analytics capability and decision-making: The role of data-driven insight on circular economy performance. Technol Forecast Soc Change 168: 120766. https://doi.org/10.1016/j.techfore.2021.120766 doi: 10.1016/j.techfore.2021.120766
|
| [2] |
Cao ZM, Lu J, Sun RQ (2025) Digital government and corporate green innovation: Evidence from "internet plus government services" in China. Int Rev Econ Financ 103: 104552. https://doi.org/10.1016/j.iref.2025.104552 doi: 10.1016/j.iref.2025.104552
|
| [3] |
Castro C, Lopes C (2022) Digital government and sustainable development. J Knowl Econ 13: 880–903. https://doi.org/10.1007/s13132-021-00749-2 doi: 10.1007/s13132-021-00749-2
|
| [4] |
Chen GC, Zou MQ (2025) Industry-specific information disclosure regulation and corporate ESG performance: Evidence from China. Financ Res Lett 71: 106483. https://doi.org/10.1016/j.frl.2024.106483 doi: 10.1016/j.frl.2024.106483
|
| [5] |
Chen T, Dong H, Lin C (2020) Institutional shareholders and corporate social responsibility. J Financ Econ 135: 483–504. https://doi.org/10.1016/j.jfineco.2019.06.007 doi: 10.1016/j.jfineco.2019.06.007
|
| [6] |
Ding ZF, Qu S, Zou SY, et al. (2024) Digital government and corporate leverage: Evidence from China. Econ Anal Policy 83: 457–479. https://doi.org/10.1016/j.eap.2024.06.026 doi: 10.1016/j.eap.2024.06.026
|
| [7] |
Fan SQ, Deng W, Zhou YQ, et al. (2025) Impact of digital financial literacy on corporate ESG performance. Financ Res Lett 85: 108010. https://doi.org/10.1016/j.frl.2025.108010 doi: 10.1016/j.frl.2025.108010
|
| [8] |
Feng SL, Zhang R, Li GX (2022) Environmental decentralization, digital finance and green technology innovation. Struct Chang Econ Dyn 61: 70–83. https://doi.org/10.1016/j.strueco.2022.02.008 doi: 10.1016/j.strueco.2022.02.008
|
| [9] |
Gan T, Jiang Y, Wu X, et al. (2024) Digital government and regional innovation. Econ Lett 238: 111713. https://doi.org/10.1016/j.econlet.2024.111713 doi: 10.1016/j.econlet.2024.111713
|
| [10] |
Gan T, Zhang M, Zhang ZQ (2023) The impact of digital government policy on entrepreneurial activity in China. Econ Anal Policy 79: 479–496. https://doi.org/10.1016/j.eap.2023.06.029 doi: 10.1016/j.eap.2023.06.029
|
| [11] |
Gao W, Liu ZB (2023) Green credit and corporate ESG performance: Evidence from China. Financ Res Lett 55: 103940. https://doi.org/10.1016/j.frl.2023.103940 doi: 10.1016/j.frl.2023.103940
|
| [12] |
Hao XL, Miao ER, Sun QY, et al. (2024) The impact of digital government on corporate green innovation: Evidence from China. Technol Forecast Soc Change 206: 123570. https://doi.org/10.1016/j.techfore.2024.123570 doi: 10.1016/j.techfore.2024.123570
|
| [13] |
Huang MY, Cheng PF, Yuan YM (2025) Empowering corporate growth: How digital government enhances investment stability. Econ Anal Policy 87: 146–161. https://doi.org/10.1016/j.eap.2025.06.004 doi: 10.1016/j.eap.2025.06.004
|
| [14] |
Jang GY, Kang H G, Kim W (2022) Corporate executives' incentives and ESG performance. Financ Res Lett 49: 103187. https://doi.org/10.1016/j.frl.2022.103187 doi: 10.1016/j.frl.2022.103187
|
| [15] |
Janowski T, Estevez E, Boguma R (2018) Platform governance for sustainable development: Reshaping citizen-administration relationships in the digital age. Gov Inf Q 35: S1–S16. https://doi.org/10.1016/j.giq.2018.09.002 doi: 10.1016/j.giq.2018.09.002
|
| [16] |
Jiao WK, Zhang C, Wang YY (2025) The impact of digital government construction on common prosperity--using data collected from 293 prefecture-level cities in China over the 2016–2022 period. Int Rev Econ Financ 102: 104353. https://doi.org/10.1016/j.iref.2025.104353 doi: 10.1016/j.iref.2025.104353
|
| [17] |
Kong DM, Liu BY (2023) Digital Technology and Corporate Social Responsibility: Evidence from China. Emerg Mark Financ Trade 59: 2967–2993. https://doi.org/10.1080/1540496X.2023.2199122 doi: 10.1080/1540496X.2023.2199122
|
| [18] |
Li HT, Lu LT, Meng TZ (2024) Digital innovation and corporate social responsibility performance: Evidence from firms' digital patents. Technol Forecast Soc Chang 207: 123626. https://doi.org/10.1016/j.techfore.2024.123626 doi: 10.1016/j.techfore.2024.123626
|
| [19] |
Li LX (2022) Digital transformation and sustainable performance: The moderating role of market turbulence. Ind Mark Manage 104: 28–37. https://doi.org/10.1016/j.indmarman.2022.04.007 doi: 10.1016/j.indmarman.2022.04.007
|
| [20] |
Liu B, Guo RF, Shi HQ (2025) Digital government and corporate investment: Effects and mechanisms, Econ Model 151: 107189. https://doi.org/10.1016/j.econmod.2025.107189 doi: 10.1016/j.econmod.2025.107189
|
| [21] |
Liu LY, Feng Y (2025) Government digital governance and corporate investment efficiency. Financ Res Lett 77: 107018. https://doi.org/10.1016/j.frl.2025.107018 doi: 10.1016/j.frl.2025.107018
|
| [22] |
Lokuwaduge CSD, Heenetigala K (2017) Integrating environmental, social and governance (ESG) disclosure for a sustainable development: An Australian study. Bus Strateg Environ 26: 438–450. https://doi.org/10.1002/bse.1927 doi: 10.1002/bse.1927
|
| [23] |
Lu YZ, Xu C, Zhu BS, et al. (2024) Digitalization transformation and ESG performance: Evidence from China. Bus Strateg Environ 33: 352–368. https://doi.org/10.1002/bse.3494 doi: 10.1002/bse.3494
|
| [24] |
Luo ZR, Yip PS, Brooks R (2025) Bridging digital finance and ESG success: The role of financing constraints, innovation, and governance. Int J Financ Stud 13: 109. https://doi.org/10.3390/ijfs13020109 doi: 10.3390/ijfs13020109
|
| [25] |
Liao GK, Li ZH, Wang MX, et al. (2022) Measuring China's digital financial inclusion: index compilation and spatial characteristics. Quant Financ Econ 6: 385–404. https://doi.org/10.3934/QFE.2022017 doi: 10.3934/QFE.2022017
|
| [26] |
Martins J, Veiga LG (2022) Digital government as a Business Facilitator. Inf Econ Policy 60: 100990. https://doi.org/10.1016/j.infoecopol.2022.100990 doi: 10.1016/j.infoecopol.2022.100990
|
| [27] |
Meng CY, Wang LC, Lin YS (2024) Digital governance and carbon emission reduction: Evidence from "National Pilot Policy of Information Benefiting the People" in China. J Environ Manage 368: 122179. https://doi.org/10.1016/j.jenvman.2024.122179 doi: 10.1016/j.jenvman.2024.122179
|
| [28] |
Meng LM, Wang HJ, Liao LY (2025) The dynamic impact mechanism of digital government development on enterprise digital transformation: A quasi-natural experiment analysis based on big data governance institutional reform. Financ Res Lett 85: 108121. https://doi.org/10.1016/j.frl.2025.108121 doi: 10.1016/j.frl.2025.108121
|
| [29] |
Meng XH, Zhu PH, Zhang YQ (2025) Can fintech improve audit efficiency? Empirical evidence from audit fees and corporate governance. Appl Econ Lett 32: 1869–1875. https://doi.org/10.1080/13504851.2024.2331657 doi: 10.1080/13504851.2024.2331657
|
| [30] |
Mu WW, Liu KF, Tao YQ, et al. (2023) Digital finance and corporate ESG. Financ Res Lett 51: 103426. https://doi.org/10.1016/j.frl.2022.103426 doi: 10.1016/j.frl.2022.103426
|
| [31] |
Nagar V, Schoenfeld J, Wellman L (2019) The effect of economic policy uncertainty on investor information asymmetry and management disclosures. J Account Econ 67: 36–57. https://doi.org/10.1016/j.jacceco.2018.08.011 doi: 10.1016/j.jacceco.2018.08.011
|
| [32] |
Ni L, Qin M, Xin Y (2023) Does the implementation of green credit policy improve the ESG performance of enterprises? Evidence from a quasi-natural experiment in China. Econ Model 127: 106478. https://doi.org/10.1016/j.econmod.2023.106478 doi: 10.1016/j.econmod.2023.106478
|
| [33] |
Niu YH, Wen W, Wang S, et al. (2023) Breaking barriers to innovation: The power of digital transformation. Financ Res Lett 51: 103457. https://doi.org/10.1016/j.frl.2022.103457 doi: 10.1016/j.frl.2022.103457
|
| [34] |
Peng ZH, Huang YQ, Liu LH (2024) How government digital attention alleviates enterprise financing constraints: An enterprise digitalization perspective. Financ Res Lett 67: 105883. https://doi.org/10.1016/j.frl.2024.105883 doi: 10.1016/j.frl.2024.105883
|
| [35] |
Qian JJ, Hu YF, Chen C, et al. (2025) Digital economy and corporate total factor productivity: evidence from China. Appl Econ Lett, 1–7. https://doi.org/10.1080/13504851.2025.2486722 doi: 10.1080/13504851.2025.2486722
|
| [36] |
Schiederig T, Tietze F, Herstatt C (2012) Green innovation in technology and innovation management–an exploratory literature review. R D Manage 42: 180–192. https://doi.org/10.1111/j.1467-9310.2011.00672.x doi: 10.1111/j.1467-9310.2011.00672.x
|
| [37] |
Shu H, Tan WQ (2023) Does carbon control policy risk affect corporate ESG performance? Econ Model 120: 106148. https://doi.org/10.1016/j.econmod.2022.106148 doi: 10.1016/j.econmod.2022.106148
|
| [38] |
Skare M, de Obesso M D, Ribeiro-Navarrete S (2023) Digital transformation and European small and medium enterprises (SMEs): a comparative study using digital economy and society index data. Int J Inf Manage 68: 102594. https://doi.org/10.1016/j.ijinfomgt.2022.102594 doi: 10.1016/j.ijinfomgt.2022.102594
|
| [39] |
Sui XH, Hu HH, Wang HJ, et al. (2024) The impact of servitization transformation on the ESG performance of manufacturing firms. Int Rev Econ Financ 96: 103582. https://doi.org/10.1016/j.iref.2024.103582 doi: 10.1016/j.iref.2024.103582
|
| [40] |
Tang J, Li W, Hu J, et al. (2025) Can government digital transformation improve corporate energy efficiency in resource-based cities? Energy Econ 141: 108043. https://doi.org/10.1016/j.eneco.2024.108043 doi: 10.1016/j.eneco.2024.108043
|
| [41] |
Tian LC, Sun K, Yang J, et al. (2024) Does digital economy affect corporate ESG performance? New insights from China. Int Rev Econ Financ 93: 964–980. https://doi.org/10.1016/j.iref.2024.05.015 doi: 10.1016/j.iref.2024.05.015
|
| [42] |
Wandaogo AA (2022) Does digitalization improve government effectiveness? Evidence from developing and developed countries. Appl Econ 54: 3840–3860. https://doi.org/10.1080/00036846.2021.2016590 doi: 10.1080/00036846.2021.2016590
|
| [43] |
Wang L, Yang HY (2024) Digital technology innovation and corporate ESG performance: Evidence from China. Econ Chang Restruct 57: 207. https://doi.org/10.1007/s10644-024-09791-x doi: 10.1007/s10644-024-09791-x
|
| [44] |
Wang XC, Li Y, Tian LW, et al. (2022) Government digital initiatives and firm digital innovation: Evidence from China. Technovation 119: 102545. https://doi.org/10.1016/j.technovation.2022.102545 doi: 10.1016/j.technovation.2022.102545
|
| [45] |
Wang XL, Ye YY (2024) Environmental protection tax and firms'ESG investment: Evidence from China. Econ Model 131: 106621. https://doi.org/10.1016/j.econmod.2023.106621 doi: 10.1016/j.econmod.2023.106621
|
| [46] |
Yang ZJ, Qin YF, Lyu XY (2025) Digital government and private firm creation: evidence from China's "Internet plus government Services" reform. Appl Econ, 1–19. https://doi.org/10.1080/00036846.2025.2525555 doi: 10.1080/00036846.2025.2525555
|
| [47] |
Zeng YL, Zhao XF, Zhu YW (2023) Equity incentives and ESG performance: Evidence from China. Financ Res Lett 58: 104592. https://doi.org/10.1016/j.frl.2023.104592 doi: 10.1016/j.frl.2023.104592
|
| [48] |
Zhao SL, Teng LJ, Arkorful VE, et al. (2023) Impacts of digital government on regional eco-innovation: Moderating role of dual environmental regulations. Technol Forecast Soc Chang 196: 122842. https://doi.org/10.1016/j.techfore.2023.122842 doi: 10.1016/j.techfore.2023.122842
|
| [49] |
Zhao YD, Zhang C, Zhao YM, et al. (2025) Data-Driven sustainability: Examining the impact of data element utilization on corporate ESG performance. Financ Res Lett 73: 106673. https://doi.org/10.1016/j.frl.2024.106673 doi: 10.1016/j.frl.2024.106673
|
| [50] |
Zheng SY, Zhang GH, Zhang PD (2023) Can customer concentration affect corporate ESG performance? Financ Res Lett 58: 104432. https://doi.org/10.1016/j.frl.2023.104432 doi: 10.1016/j.frl.2023.104432
|
| [51] |
Zhu JH, Baker JS, Song ZT, et al. (2023) Government regulatory policies for digital transformation in small and medium-sized manufacturing enterprises: An evolutionary game analysis. Hum Soc Sci Commun 10: 1–18. https://doi.org/10.1057/s41599-023-02250-4 doi: 10.1057/s41599-023-02250-4
|
| [52] |
Zhu Y, Yu D (2024) Can government digitalization promote firm productivity? Evidence from Chinese listed firms. Appl Econ 56: 3939–3952. https://doi.org/10.1080/00036846.2023.2208853 doi: 10.1080/00036846.2023.2208853
|
| [53] |
Zhu Y, Zhang ZY (2024) Supply chain digitalization and corporate ESG performance: Evidence from supply chain innovation and application pilot policy. Financ Res Lett 67: 105818. https://doi.org/10.1016/j.frl.2024.105818 doi: 10.1016/j.frl.2024.105818
|
| [54] |
Zou Q, Mao Z, Yan R, et al. (2023) Vision and reality of e-government for governance improvement: Evidence from global cross-country panel data. Technol Forecast Soc Chang 194: 122667. https://doi.org/10.1016/j.techfore.2023.122667 doi: 10.1016/j.techfore.2023.122667
|
Figures(2) / Tables(11)
Guangming Lv, Shuangshuang Xiao. Digital government construction and corporate ESG performance: evidence from the "Internet + Government Services" pilot as a quasi-natural experiment[J]. Green Finance, 2026, 8(2): 298-325. doi: 10.3934/GF.2026011
DownLoad: