Technology Empowerment and Institutional Pressure: A Study of the Impact of Digital Transformation on Financial Statement Information Quality–From the Perspective of Environmental, Social, and Governance (ESG) Greenwashing Governance

Abstract

Against the background of the comprehensive green transformation of the economy and society, the relationship between digital transformation and corporate environmental disclosure has become increasingly prominent. Most existing studies focus on the effects of digital transformation on operating efficiency or environmental performance, but they have not answered whether digital transformation can improve environmental information quality and then transmit this improvement to the field of financial information. Using Chinese A-share listed companies from 2011 to 2021 as the research sample, this study empirically examines the effect of corporate digital transformation on financial statement information quality. The results show that digital transformation significantly inhibits ESG greenwashing, further reduces earnings management, and improves accounting information comparability. The mechanism analysis shows that digital transformation improves corporate information quality by strengthening internal control, alleviating financing constraints, and enhancing external supervision. The heterogeneity analysis shows that the governance effect of digital transformation is more significant in firms with greater information asymmetry and lower institutional ownership. The findings provide evidence for promoting high-quality corporate development and improving the information environment of the capital market.