What is it about?
This study explores the relationship between outward foreign direct investment performance (OFDI/OFIP) and digital transformation (DT), with ESG performance as a mediator. Analyzing data from 2010 to 2020, the findings reveal that OFIP positively impacts DT, strengthened by ESG performance. However, China's accelerated depreciation of fixed assets policy (ADP) negatively affects DT and OFIP in high-tech firms. The results provide insights for companies aiming to enhance sustainability and competitiveness through overseas investments and improved ESG practices.
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Why is it important?
This study is important as it explores the links between outward foreign direct investment (OFDI), digital transformation (DT), and ESG performance. It provides insights for companies to enhance sustainability and competitiveness while highlighting the effects of policies like China's accelerated depreciation of fixed assets on high-tech firms. Overall, it contributes to understanding how investments and corporate practices can drive innovation and responsible growth in emerging economies.
Perspectives
This study highlights the interplay between investment strategies, digital transformation, and ESG considerations. It emphasizes the importance of sustainable practices for competitiveness and offers insights into the impact of policies like China's accelerated depreciation. Overall, it is a valuable contribution to both research and practical business applications.
Dr Muhammad Usman Khurram
Zhejiang University
Read the Original
This page is a summary of: Outward foreign investment performance, digital transformation, and ESG performance: Evidence from China, Global Finance Journal, May 2024, Elsevier,
DOI: 10.1016/j.gfj.2024.100963.
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