Enterprise digital transformation, accounting information comparability and corporate innovation
Abstract
In the evolving digital landscape, the digital shift within corporations is pivotal for fostering innovation and elevating competitiveness. This study investigates the impact of digital transformation on enterprise innovation, utilizing a dataset of A-share listed firms from 2010 to 2020. To address sample self-selection, the Propensity Score Matching (PSM) method is employed, dividing enterprises into experimental and control groups based on their level of digital transformation. Additionally, to mitigate endogeneity concerns, all explanatory variables are lagged by one period. The study employs benchmark regression analysis, considering control variables and fixed effects for year and industry, to examine the relationship between digital transformation and innovation. The study constructs models to evaluate the mediating role of accounting information comparability in the relationship between digital transformation and innovation. Notably, a strong positive link is observed between a company’s digital evolution and its innovation capacities, suggesting that this evolution substantially augments innovation. Moreover, the consistency of accounting data further amplifies this effect. Such insights offer strategic guidance for companies aiming to bolster innovation amid their digital journey and underscore the necessity for consistent accounting data.
References
1. Wang Y, Guo Y. Corporate digital transformation and ESG performance—Empirical evidence based on Chinese listed firms. Financial Research. 2023; 49(09): 94-108.
2. Gao H, Wang Q. “The gift of green”: The impact of digital transformation on corporate environmental performance-Empirical evidence from A-share listed companies in China’s manufacturing industry. Journal of Henan Normal University (Philosophy and Social Science Edition). 2023; (05): 88-94.
3. Hu Y, Zhang X. The impact of ESG on management tone: Empirical evidence from China. Forum for Economic and Financial Studies. 2024; 2(1): 1276-1276.
4. Bharadwaj A, El Sawy OA, Pavlou PA, et al. Digital Business Strategy: Toward a Next Generation of Insights. MIS Quarterly. 2013; 37(2): 471-482.
5. Guo X, Chen X. The Impact of Digital Transformation on Manufacturing-Enterprise Innovation: Empirical Evidence from China. Sustainability. 2023; 15(4):3124.
6. Martínez-Caro E, Cegarra-Navarro JG, Alfonso-Ruiz FJ. Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change. 2020; 154: 119962. doi: 10.1016/j.techfore.2020.119962
7. Zhang X, Tian L, Liu Z, et al. A study of the impact of regional O2O teaching quality on the digital transformation of listed companies. Sustainable Economies. 2024; 2(2): 99. doi: 10.62617/se.v2i2.99
8. De Franco G, Kothari SP, Verdi RS. The Benefits of Financial Statement Comparability. Journal of Accounting Research. 2011; 49(4): 895-931. doi: 10.1111/j.1475-679x.2011.00415.x
9. Barth ME, Landsman WR, Lang MH. International Accounting Standards and Accounting Quality. Journal of Accounting Research. 2008; 46(3): 467-498. doi: 10.1111/j.1475-679x.2008.00287.x
10. Gu L, Zhang Y, Hao W. Digital transformation of China’s governance under the perspective of “value-tool”. Journal of Xi’an Jiaotong University (Social Science Edition).
11. Hu Y, Zhang X. A study on the impact of digital economy on green technology innovation of enterprises. Eco Cities. 2024; 4(2): 2617. doi: 10.54517/ec.v4i2.2617
12. Cheng JI, Ding S. Digital transformation, inter-industry technology spillover and skill wage premium. Scientology Research. 2023; 1-18.
13. Zhong T, Huang Y, Sun F. Enterprise digital transformation, market competition and comparability of accounting information. Modern Finance and Economics (Journal of Tianjin University of Finance and Economics). 2022; 42(12): 21-43.
14. Zhang Y, Bu J. Will the digital transformation of enterprises affect the comparability of accounting information. Journal of Zhongnan University of Economics and Law. 2023; (02): 41-51.
15. Yu B, Yang G. Accounting Information Comparability and Corporate Labor Investment Efficiency. Investment Research. 2022; 41(06): 31-58.
16. Kong D, XU M, Kong G. Internal pay gap and innovation in enterprises. Economic Research. 2017; (10): 144 -157.
17. Xuan Z, Li C, Hao W. Is the higher the level of technological innovation the better the financial performance of enterprises?—An empirical study based on 16 years of patent application data of Chinese pharmaceutical listed companies. Financial Research. 2012; (8): 166-179.
18. Wu F, Hu H, Lin H, et al. Corporate digital transformation and capital market performance—Empirical evidence from stock liquidity. Management World. 2021; (7): 130-144.
19. De Franco G, Kothari SP, Verdi RS. The Benefits of Financial Statement Comparability. Journal of Accounting Research. 2011; 49(4): 895-931. doi: 10.1111/j.1475-679x.2011.00415.x
Copyright (c) 2024 Tian Tian
This work is licensed under a Creative Commons Attribution 4.0 International License.
Submit a Paper
