Can digital transformation reduce corporate stock price crashes?

ABSTRACT:

Purpose

The purpose of this paper is to study the impact of enterprises' digital transformation on the risk of stock price crashes, but also to study the mediating role of enterprises' financialization and accounting conservatism in the enterprises' digital transformation on stock price crash risk.

Design/methodology/approach

Based on the data of 2,599 listed companies in China from 2010 to 2019, this paper constructs indicators of enterprise digital transformation through word frequency analysis method, and uses fixed-effects model and mediated-effects model to explore the impact and mechanism of enterprise digital transformation on the stock price crash risk.

Findings

This study shows that firms' digital transformation reduces the risk of stock price crashes and tha

SUBMITTER: Zhao X 

PROVIDER: S-EPMC10721070 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature