Green governance effects of Open Government Data on corporate ESG performance

Open Government Data (OGD) represents a pivotal policy initiative within China's digital economy. We argue that OGD can mitigate economic externalities, stimulate data vitality, and incentivize firms to enhance their ESG disclosures. Using a novel dataset that tracks the launch of government data platforms, we provide the first large-scale evidence of the relationship between OGD and firm ESG disclosure. Our findings indicate that compared to firms unaffected by OGD, those influenced by OGD demonstrate a more significant improvement in corporate ESG performance. OGD enhances corporate ESG performance through two primary channels: strengthening external supervision mechanisms and fostering ESG-related innovation. Further, these effects are more pronounced for firms in regions with higher levels of legal enforcement, greater regional innovation, and high environmental sensitivity, and for state-owned enterprises. Our research deepens the understanding of ESG theory and practice and offers empirical evidence to inform government policy-making.