Impact of Informatization and Corporate ESG Performance: A Quasi-Natural Experiment Based on Smart City Pilots

Abstract

In this paper, we first select data from A-share listed companies between 2011 and 2020 as the sample and employ a Difference-in-Differences (DID) model to systematically investigate the relationship between the implementation of smart city policies and corporate ESG performance levels. The study finds that the implementation of smart city policies significantly enhances the level of informatization in the locations of companies, thereby positively influencing their ESG performance levels. It is noteworthy that this effect manifests significant heterogeneity across companies of different natures and various urban locations. Furthermore, to verify the robustness of the research findings, we conduct empirical tests using various methods, including baseline regression, parallel trend analysis, placebo tests, and Propensity Score Matching (PSM). The test results all confirm that the informatization impact generated by smart city policies effectively promotes the elevation of corporate ESG levels, lending strong robustness to this conclusion. In summary, this study reveals that the informatization impact triggered by the implementation of smart city policies plays a constructive role in boosting corporate ESG performance levels. This finding offers robust policy recommendations and empirical support for further refining smart city policy design, propelling companies to reinforce ESG information disclosure, and enhancing their competitiveness and sustainable development capabilities.