The impact of economic policy uncertainty and digital integration on ESG practices in European companies

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE Research in International Business and Finance Pub Date : 2025-04-01 Epub Date: 2025-02-21 DOI:10.1016/j.ribaf.2025.102826

Imen Ayadi , Jahmane Abderrahman

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Abstract

This study examines the impact of economic policy uncertainty (EPU) and digital integration on corporate environmental, social, and governance (ESG) practices, a critical issue in today's volatile economic landscape. Using a robust econometric approach, we employ a two-stage GMM estimation system and Powell's IV-QRPD panel model to analyze variations across different levels of corporate sustainability. The findings reveal that EPU has a heterogeneous effect on ESG performance: it negatively impacts firms with lower ESG scores while benefiting those with stronger sustainability commitments. Conversely, digital integration plays a crucial role in enhancing ESG practices and mitigating the adverse effects of EPU, fostering long-term resilience and sustainability. These results highlight the importance of corporate investment in digital transformation as a strategic tool for improving ESG performance, particularly in uncertain economic environments. Policymakers should support digital adoption to strengthen corporate sustainability and reduce vulnerability to economic fluctuations.

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经济政策的不确定性和数字化整合对欧洲企业ESG实践的影响

本研究探讨了经济政策不确定性（EPU）和数字化整合对企业环境、社会和治理（ESG）实践的影响，这是当今动荡的经济格局中的一个关键问题。采用稳健的计量经济学方法，我们采用两阶段GMM估计系统和鲍威尔的IV-QRPD面板模型来分析不同水平的企业可持续性的变化。研究发现，EPU对ESG绩效的影响具有异质性：它对ESG得分较低的公司产生负面影响，而对可持续发展承诺较强的公司则有好处。相反，数字整合在加强ESG实践、减轻EPU的不利影响、培养长期韧性和可持续性方面发挥着至关重要的作用。这些结果突出了企业投资数字化转型作为提高ESG绩效的战略工具的重要性，特别是在不确定的经济环境中。政策制定者应支持采用数字技术，以加强企业的可持续性，减少对经济波动的脆弱性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

期刊介绍： Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance