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Do ESG-committed firms talk less about digital transformation? Evidence from Australian listed companies

Van Ky Long Nguyen, Thi Tuyet Anh Nguyen, Thi My Hanh Le, An Hai Vo

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

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Abstract

This study examines the relationship between firms’ environmental, social and governance performance and their disclosure of digital transformation in annual reports. Using a panel of 79 non-financial firms listed on the Australian Securities Exchange from 2014 to 2024, we construct a text-based digital transformation index and estimate two-way fixed effects models with Driscoll–Kraay robust standard errors. The results show a negative and statistically significant association between ESG performance and digital transformation disclosure, indicating that firms with stronger ESG commitment place less emphasis on communicating digital initiatives. This suggests a strategic substitution effect, where sustainability-oriented firms rely less on digital signaling in their corporate reporting. The study contributes to understanding how firms balance competing strategic domains in their disclosures, and provides insights for managers and policymakers regarding integrated approaches to sustainability and digital transformation disclosure.
Original languageEnglish
Title of host publicationProceedings of the International Conference on Sustainable Economics and Finance in the Digital Business Transformation (INCOSEF 2025)
EditorsXuan Vinh Vo, Thi Nha Truc Phan
PublisherAtlantis Press
Pages36-47
Number of pages12
ISBN (Electronic)9789462396241
DOIs
Publication statusPublished - 6 Apr 2026
EventInternational Conference on Sustainable Economics and Finance in the Digital Business Transformation (INCOSEF 2025) - Ho Chi Minh City, Viet Nam
Duration: 20 Dec 202521 Dec 2025

Publication series

NameAdvances in Economics, Business and Management Research
Volume380
ISSN (Electronic)2352-5428

Conference

ConferenceInternational Conference on Sustainable Economics and Finance in the Digital Business Transformation (INCOSEF 2025)
Country/TerritoryViet Nam
CityHo Chi Minh City
Period20/12/2521/12/25

Bibliographical note

© The Author(s) 2026. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.

Keywords

  • ESG
  • digital transformation
  • corporate disclosure
  • sustainability
  • text analysis
  • Australia

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