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◆ Journal of financial reporting & accounting2025-10-16· Digital transformation

Digital transformation and ESG performance in MENA banks: the moderating role of returnee CEOs

Imen Khanchel, Naima Lassoued, Elyes Mekni

原始摘要(英文原文)· Original abstract
Purpose This paper aims to investigate the impact of digital transformation on environmental, social and governance (ESG) performance in Arab Middle East and North Africa (MENA) banks and examines whether returnee CEOs moderate this relationship. Design/methodology/approach Using a two-step dynamic generalized method of moments (GMM) estimator, the authors analyze panel data from 93 banks across 10 Arab MENA countries over the period 2012–2022. Findings Digital transformation negatively affects environmental and governance performance but positively influences social performance. Returnee CEOs significantly moderate the relationship, enhancing ESG performance across all dimensions. Furthermore, the relationship exhibits a U-shaped pattern, indicating that digital maturity is critical to realizing sustainability benefits. Research limitations/implications These findings provide important insights for regulators and policymakers, highlighting the need for targeted regulations governing digital transformation and proactive oversight of ESG practices in the banking sector. The study also highlights institutional challenges in balancing digital investments with sustainable development goals. Originality/value This study contributes to the literature by contrasting agency theory with stakeholder theory, signaling theory, resource-based view and innovation theory to explain how digital transformation influences ESG performance. It further integrates imprinting theory to highlight the role of returnee CEOs as moderators, offering new insights into how international experience shapes sustainability performance in emerging economies.
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Digital transformation and ESG performance in MENA banks: the moderating role of returnee CEOs — 科研速览 Science Skim