Does the National Big Data Comprehensive Experimental Zone Pilot Policy Effectively Promote the ESG Performance of Firms? Evidence From Listed Firms in China

Enhancing firms' ESG performance has become an important issue for promoting sustainable economic development. Nowadays, the application of big data technology may have a significant impact on firms' ESG performance, but research in this area remains relatively insufficient. Based on the quasi-natural experiment of the national big data comprehensive experimental zone pilot policy (NBDCEZs) in China, this study employs panel data from 1383 Chinese nonfinancial listed firms from 2009 to 2022. We utilize the difference-in-differences (DID) method to explore the impact of big data development on ESG performance. The results indicate that the implementation of the NBDCEZs has a significant positive effect on enhancing firms' ESG performance. The mechanism analysis suggests that the policy effectively improves firms' ESG performance by strengthening information disclosure quality and alleviating financing constraints. Additionally, the heterogeneity analysis finds that the positive effects of big data development are more pronounced in state-owned firms, firms with higher financial risk, and regions with lower levels of informatization. This study provides insights for policymakers and business decision-makers on promoting sustainable development in the era of the digital economy.