Digital Transformation and Environmental, Social, and Governance Performance from a Human Capital Perspective

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

This paper investigates the relationship between corporate digital transformation and ESG performance from a human capital perspective. But I have a few suggestions that I hope the authors can improve:

1 Literature should be cited in the correct format, the way it is now will affect the readers' reading.

2 The introduction spends a lot of space on the importance of the research and discusses the importance of this paper. It is recommended to add a discourse on why this one scientific question is so studied. That is, it needs to be compared with existing research on the relationship between digitalisation and ESG performance. The existing shortcomings are sorted out and this study addresses the shortcomings. Such an introduction may be more storytelling and readable.

3 In the first part, it is recommended to add a nice graphical summary or a table to compare the existing literature. The purpose of doing so is mainly to highlight the problematic awareness of this paper. A good problem is a better way to engage the reader.

4 In the introduction section, it is suggested to add the possible marginal contributions of this paper, and the chapter structure.

5 Overall, this paper is a little less innovative, a little less work, a little less lengthy, and the assumptions and conclusions are more common. It is suggested to change H2 to H2a and H3 to H2b. The new hypothesis H3 l Green policies have a positive moderating role in the relationship between corporate digitalisation and ESG performance, increasing the workload and length of the paper.

6 Need the framework structure of the thesis, add a section to do the theoretical mechanism derivation with game theory to improve the innovation of the thesis. It can be the government, enterprise two sides of the game. I don't know what should be expressed clearly, so I recommend a Chinese paper I read some time ago, you can refer to his framework: (Green Finance, Green Policy and Green Transformation of Real Enterprises [J]. China Population-Resources and Environment,2023,33(10):47-60.) Just refer to this framework, English journals generally do not need to cite Chinese journals.

7 I consider it this way: your topic is a popular one, but there is a lack of innovation and a lack of workload. Combining game theory and empirical evidence adds the regulatory effect of green policies, which can improve the innovation and workload of the article. When using game theory, you can cite relevant articles on game theory, https://doi.org/10.1016/j.jlp.2023.105230 I hope it can help you.

8 The heterogeneity test can be analysed in more depth, and the current analysis is a bit shallow.

9 The conclusion can be divided into two parts. (1) Conclusion. Then the research results are presented in points 123. (2) Policy recommendations123 Not only for companies, but also for the government.

10 Suggestions to increase the limitations of this paper.

11 Suggest to add references for 2024.

 

Comments on the Quality of English Language

Minor editing of English required

Author Response

Dear Review,

We acknowledge the valuable comments from you very much, which are precious for improving the quality of our manuscript.

We have carefully revised the manuscript according to your comments in detail (the modified parts are marked in red color). We hope, with these modifications and improvements based on your suggestions and comments, the quality of our manuscript would meet the publication standard of journal. Some explanations regarding the revisions of our manuscript are as follows. Please see the attachment.

We really appreciate your patience and kind consideration, and if you have any questions, please contact us.

 

Best regards,

Yours sincerely,

Authors

Author Response File: Author Response.pdf

Reviewer 2 Report

Comments and Suggestions for Authors

 

Some points for improvement in this article may include:

Very good article. I propose the following corrections:

Abstract – expand the abstract with content that attracts the reader and appears in the article.

Indroduction – add a detailed section on the purpose of the article and how the purpose of the article was achieved, add a section on the structure of the article.

Literature review – Consider expanding your literature review to include a broader range of research on digital transformation beyond the market you are examining. This will ensure that the implications are better understood and compared to the specific findings of Chinese companies.

Develop a detailed research methodology. I haven't noticed this at the moment.

In the article you discuss the positive effects of digital transformation, consider adding information in which digital transformation did not lead to the expected improvement in ESG performance.

Add a discussion chapter.

Author Response

Dear Review,

We acknowledge the valuable comments from you very much, which are precious for improving the quality of our manuscript.

We have carefully revised the manuscript according to your comments in detail (the modified parts are marked in red color). We hope, with these modifications and improvements based on your suggestions and comments, the quality of our manuscript would meet the publication standard of journal. Some explanations regarding the revisions of our manuscript are as follows. Please see the attachment.

We really appreciate your patience and kind consideration, and if you have any questions, please contact us.

 

Best regards,

Yours sincerely,

Authors

Author Response File: Author Response.pdf

Reviewer 3 Report

Comments and Suggestions for Authors

The material is correctly written and I have no major objections. What I think the authors should correct is to fill in the material, starting from the abstract with limitations that certainly exist, and refer to existing research.

Also, the abstract should be more specific and refer more to the achievements of the research than to the circumstances under which the research was conducted - see the material for the structure of the abstract...

Thanks.

Author Response

Dear Review,

We acknowledge the valuable comments from you very much, which are precious for improving the quality of our manuscript.

We have carefully revised the manuscript according to your comments in detail (the modified parts are marked in red color). We hope, with these modifications and improvements based on your suggestions and comments, the quality of our manuscript would meet the publication standard of journal. Some explanations regarding the revisions of our manuscript are as follows. Please see the attachment.

We really appreciate your patience and kind consideration, and if you have any questions, please contact us.

 

Best regards,

Yours sincerely,

Authors

Author Response File: Author Response.pdf

Reviewer 4 Report

Comments and Suggestions for Authors

The study "Digital Transformation within Enterprises and ESG Performance from a Human Capital Perspective" examines the impact of digital transformation within enterprises on ESG performance from a human capital perspective in Chinese A-share listed enterprises from 2010 to 2022. The study takes Chinese A-share listed enterprises from 2010 to 2022 as the research object and explores the impact of digital transformation within enterprises on ESG performance from a human capital perspective. The structure of the thesis is relatively sound, but there are still many problems worth thinking about. In order to improve the quality of the thesis, the following suggestions are made:

1. In the Introduction part, there is a lack of definition about the research object Digital Transformation within Enterprises and ESG Performance; at the same time, there is a lack of introduction of the marginal contribution of this research. It is suggested that the authors add the definition of the research object and clearly state the contribution of this research in the Introduction section.

2.In the Research Hypotheses section, the theoretical analysis of H1 focuses on the impact of Digital Transformation on Governance (G) and Environment (E), and lacks theoretical references to the impact on Social Responsibility (S), while the results of the empirical section show that Digital Transformation within Enterprises has a significant impact on Social, but not on the other two, so the theoretical and empirical results do not correspond. . It is suggested that the authors increase the theoretical reference of the impact of digital transformation within the enterprise on the social aspects and analyse the reasons for the deviation between the empirical results and the theory.

3.In the Research Hypotheses section, the theoretical references of H2 and H3 only focus on the analysis of the impact on the social (S) aspects, and lack the direct analysis of the impact on the environment (E) and governance (G). It is recommended that the authors reorganise the theoretical references in this section to add analyses of the impacts on the environment and governance.

4. Regarding the selection of the research sample, the description of the research sample in the Abstract and Introduction sections is Chinese A-share listed enterprises, and in the Data sources and processing section, Enterprises listed in the A-share service industry is selected as the sample. the A-share service industry as the sample, which is inconsistent in scope and does not explain the reason for choosing the service industry and the industry classification standard. It is suggested that the authors clarify the research sample and revise the whole text.

5. In the Empirical model section, the models (1) (2) (3) do not include the intercept term. According to the test method and regression results of this study, the models (1) (2) (3) should include the intercept term. It is recommended that the authors revise the model.

6. Regarding the measurement of core variables, the explanatory variable ESG performance indicator selects CSI ESG rating data and ranks the ESG ratings of listed companies from 1 to 9 in ascending order, and the higher the value, the greater the ESG advantage of listed companies, while the CSI ESG ratings are divided into ten grades from high to low: AAA, AA, A, BBB, BB, B, CCC, CC, C, and D, which is not compatible with this study's assignment of values from 1 to 9; the explanatory variables are divided into ten grades from 1 to 9, which is not compatible with this study's assignment of values from 1 to 9. The assignment does not match; the description of the measure of the explanatory variable Dig is not clear enough, how to choose the key terms related to digitisation, how to calculate the molecular frequency, etc., and the treatment of the ratio multiplied by 100 lacks theoretical and technical support. It is suggested that the authors should supplement and improve the introduction of the measurement methods of core variables.

7. In the section of Heterogeneity exploration, only a brief description of the regression results is given, and the causes are not explored and analysed. It is suggested that the authors add the analysis of the causes of heterogeneity.

8. Detailed errors: (1) in lines 185-190, the key explanatory variable is used to describe both ESG and Dig; (2) in lines 245-246, the introduction of Table 3 says "Table 3 provides the benchmark regression results concerning the impact of digitalisation". Table 3 provides the benchmark regression results concerning the impact of digital transformation within enterprises on employee scale. The introduction of Table 3, "Table 3 provides the benchmark regression results concerning the impact of digital transformation within enterprises on employee scale." should not be "on employee scale"; ③ The Symbols of the variables in Table 1 are not consistent with the representation of the variables in Table 3 and other tables. For example, the key explanatory variable Digital transformation within enterprises is Dig in Table 1, but IDig in Tables 3, 4, 5, 7, 8, and 9; ④ Rows 289-291, "Column (2) of Table 3 demonstrates that, after employing the instrumental variable, the main conclusions of the study remain robust and reliable." should not be a description of Table 3 presentation, etc. These errors in detail add to the barrier to reading, and the authors are advised to check the full text for corrections.

Author Response

Dear Review,

We acknowledge the valuable comments from you very much, which are precious for improving the quality of our manuscript.

We have carefully revised the manuscript according to your comments in detail (the modified parts are marked in red color). We hope, with these modifications and improvements based on your suggestions and comments, the quality of our manuscript would meet the publication standard of journal. Some explanations regarding the revisions of our manuscript are as follows. Please see the attachment.

We really appreciate your patience and kind consideration, and if you have any questions, please contact us.

 

Best regards,

Yours sincerely,

Authors

Author Response File: Author Response.pdf

Reviewer 5 Report

Comments and Suggestions for Authors

This study explores the specific impact of digital transformation within enterprises on their environmental, social, and governance (ESG) performance holds profound practical value for advancing the sustainable development of China’s economy and society. I think that the article holds significant research value and meets the appropriate standards of quality. My detailed opinion is as follows:

1.      In the introduction, the authors should clearly indicate the innovations of this paper, I recommend giving the contributions in the last of first section.

2.      I recommend authors give a structure in the last of first section.

3.      Some cited numbers are not right, for example, “An enterprise’s ESG performance significantly influences its overall value and operational efficacy3. Specifically, strong ESG performance can lead to a notable reduction in financing costs for enterprises45, mitigate the risks they face 67, and facilitate their engagement in foreign direct investment activities 8. Nevertheless, implementing ESG practices entails additional investments that can impose financial pressure on enterprises9”.

4.      “: Digital transformation within enterprises” is suitable? I think maybe corporate Digital transformation. You can find some related papers with this topic.

5.      The robustness test of this article is too simple. It is suggested to refer to these articles to add robustness tests to verify the reliability of the conclusions. For example: Lu et al. Digitalization transformation and ESG performance: Evidence from China. Business Strategy and the Environment; Wan et al. 2024. How does low-carbon city pilot policy catalyze companies toward ESG practices? Evidence from China. Economic Analysis and Policy.

6.      The empirical analysis does not provide an in-depth discussion of its economic implications, that is, the results are not discussed from an economic perspective, including a comparative analysis with the existing literature.

7.      According to my preliminary analysis, most literature is from Chinese studies. It is recommended that authors limit citations from Chinese studies to approximately 5. Furthermore, it is crucial to explicitly specify these references as being in Chinese, facilitating readers in its easy identification. I suggest that this paper focuses on the literature related to carbon emissions published in well-known journals in the last two years.

Comments on the Quality of English Language

Moderate editing of English language required

Author Response

Dear Review,

We acknowledge the valuable comments from you very much, which are precious for improving the quality of our manuscript.

We have carefully revised the manuscript according to your comments in detail (the modified parts are marked in red color). We hope, with these modifications and improvements based on your suggestions and comments, the quality of our manuscript would meet the publication standard of journal. Some explanations regarding the revisions of our manuscript are as follows. Please see the attachment.

We really appreciate your patience and kind consideration, and if you have any questions, please contact us.

Best regards,

Yours sincerely,

Authors

Author Response File: Author Response.pdf

Round 2

Reviewer 1 Report

Comments and Suggestions for Authors

no

Author Response

Dear Reviewer,

Thanks for your valuable feedback and constructive comments during the previous review round. Your insights have significantly contributed to the improvement of our manuscript. In this round of revisions, we have thoroughly reviewed the entire text and made necessary enhancements to ensure clarity and coherence. We have also carefully polished the language to further refine the manuscript. Additionally, we specifically sought assistance from professional institutions to refine the wording of the article, ensuring its accuracy.

We appreciate your time and effort in reviewing our paper and hope that the revisions meet your expectations.

Best regards.

Reviewer 4 Report

Comments and Suggestions for Authors

The study “Digital Transformation within Enterprises and ESG Performance from a Human Capital Perspective” has mostly responded to and revised the previous review comments. After the revision, the structure of the paper is better, but there are still some problems worth thinking about. In order to improve the quality of the paper, the following suggestions are made:

1. In the part of Model specification, the model has not included the constant term, so we suggest the authors to modify the model in this part, instead of only reflecting it in the table of regression results.

2、Robustness test part, the robustness test about “Eliminate big events ”is to exclude the samples of 2008 and 2020 for re-estimation, while the sample time interval chosen in this study is 2010-2022, the data of 2008 is not included, it is suggested to modify the treatment of this part again.

3, Discussion part, the third paragraph of the discussion on the results of the mediation effect test, the conclusion is inconsistent with the empirical results of the previous part, the results of the interpretation of the analysis of the direct impact of digital transformation on the ESG performance of enterprises, the lack of theoretical explanations of the mediation effect, it is recommended to re-modify the discussion of this part. At the same time, the empirical part of the increase in industry-based heterogeneity analysis, it is recommended to increase the discussion of the results of the heterogeneity test in the Discussion section.

4. The article still has some detail errors: (1) The title of 3.2.3 and the title of 3.2.4 are Moderating variable. (2) The control variable Return on assets (ROA) in 4.1，Descriptive statistics is expressed as ROA1. (3) There is a problem with the format of Table5 , the data in columns (4)(5) are not visible. These errors in details add to the difficulty of reading and the authors are advised to check and correct them in full.

Author Response

Dear Reviewer,

Thank you for providing valuable feedback and constructive suggestions during the previous round of review. Your insights have significantly contributed to the improvement of our manuscript. In this round of revisions, we have meticulously addressed each of your comments, thoroughly reviewed the entire document, and made necessary enhancements to ensure clarity and coherence. We have also meticulously refined the language to further polish the manuscript. Additionally, we sought assistance from professional institutions to refine the wording of the article, ensuring its accuracy. Specific responses to the modifications can be found in the attached document.

We appreciate the time and effort you have dedicated to reviewing our paper.

Best regards.

Author Response File: Author Response.pdf

Reviewer 5 Report

Comments and Suggestions for Authors

ok

Comments on the Quality of English Language

ok

Author Response

Dear Reviewer,

Thanks for your valuable feedback and constructive comments during the previous review round. Your insights have significantly contributed to the improvement of our manuscript. In this round of revisions, we have thoroughly reviewed the entire text and made necessary enhancements to ensure clarity and coherence. We have also carefully polished the language to further refine the manuscript. Additionally, we specifically sought assistance from professional institutions to refine the wording of the article, ensuring its accuracy. Specific responses to the modifications can be found in the attached document.

We appreciate your time and effort in reviewing our paper and hope that the revisions meet your expectations.

Best regards.

Author Response File: Author Response.pdf