Digital Transformation and ESG Synergy in Enhancing Enterprise Market Value

Coordinating digital transformation with environmental, social, and governance (ESG) practices is essential for corporate sustainability. Examining how this coordination affects enterprise market value clarifies the value implications of integrating the two strategies. Drawing on 26,486 firm–year observations for Chinese A-share firms during 2011–2024, this study constructs a digital transformation–ESG synergy (DESG) index using a coupling coordination degree (CCD) model that integrates annual-report digital transformation frequency and Huazheng ESG performance scores. A two-way fixed-effects model is used for estimation. The reported baseline shows a significant positive association between DESG and enterprise market value after controlling for firm characteristics and firm and year fixed effects. First-link mechanism analysis indicates that DESG is positively associated with firms’ internal conversion capacities (absorptive, innovation, and adaptive capabilities), operational green transformation, and external corporate reputation. Moderation analysis further shows that all five internal and external moderators positively shift the marginal DESG–market value slope: media coverage and green governance recognition amplify the positive association across all quartiles, whereas entrepreneurial spirit, new quality productive forces, and analyst attention exhibit threshold effects in which the marginal slope shifts from negative or null in the lowest quartile to significantly positive at the median and upper quartiles. Heterogeneity analysis further reveals that this association is more pronounced in eastern and central China and among high-technology, state-owned, and large firms. The findings provide firm-level evidence on the market value implications of digital–ESG synergy and offer theoretical and managerial implications for coordinating the two strategies.