How Do Robot Applications Affect Corporate Sustainability?—An Analysis Based on Environmental, Social, and Governance Performance

Abstract

Can the application of robots promote corporate sustainability? This study constructs micro-data based on robot data provided by the IFR and annual reports of China’s A-share listed companies from 2010 to 2018. By employing a multidimensional fixed effects model for empirical analysis, we arrive at the following conclusions. Firstly, the implementation of robotic technologies substantially improves the environmental, social, and governance (ESG) performance of corporations, which remains robust following a series of robustness tests (including the implementation of instrumental variables, the Heckman two-stage model, and placebo tests). Secondly, a decomposition effect analysis shows that robots positively influence the E, S, and G aspects of ESG; in addition, robotic applications primarily promote corporate ESG performance by promoting green technology innovation, boosting corporate goodwill, and enhancing internal control effectiveness. Thirdly, a heterogeneity analysis reveals that the positive effects of robotic applications on corporate ESG performance are predominantly observed in state-owned, large-scale, and technology-intensive enterprises. Additionally, the promoting effect is strongest in enterprises located in central regions, followed by the eastern regions, while the effect in the western regions is insignificant. Furthermore, the results of the quantile regression analysis reveal that robotics exerts a greater impact on firms with higher initial levels of ESG performance. These findings offer researchers a framework to identify and measure the effects of robots on corporate sustainability, thus enhancing the understanding of the relationship between robotics and corporate sustainability.