In finance, digital tools work both as the subject of study and as the means of studying it. They examine digital finance itself, meaning technology-driven services like mobile payments, online lending, and digital credit. They measure its development across regions using a digital financial inclusion index and test its effect on the ESG performance of Chinese listed firms. Their sample covers 26,294 firm-year observations over 2011-2020.
Research like this also depends on digital databases like CSMAR and WIND for firm financials and ESG ratings, plus statistical software for regression analysis. Digital finance itself matters because it helps firms overcome financing constraints, which the authors find is the main way it improves corporate ESG.