The impacts of digital transformation and accounting information quality on ESG outcomes in an emerging country

Abstract

This study examines how digital transformation (DT) is associated with perceived Environmental, Social and Governance (ESG) outcomes through Accounting Information Quality (AIQ) among Vietnamese listed non-financial firms. Rather than treating the DT-ESG relationship as a solely operational link, the study tests whether AIQ serves as an informational capability through which digital systems improve the measurement, monitoring and disclosure of sustainability-related activities. Survey data were collected from 215 senior managers and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show positive associations between DT, AIQ and perceived ESG outcomes, and AIQ partially mediates the DT-ESG relationship (variance accounted for, VAF = 44.8%). The strongest sub-path is from AIQ to governance, suggesting that reliable and timely information is especially relevant to oversight and accountability. The findings should be interpreted with caution because the study relies on cross-sectional, single-source perceptual data. The study contributes by specifying a modest but analytically distinct informational pathway linking digitalization, reporting quality and sustainability-oriented managerial outcomes in an emerging-market context.