Year: 2023
Type: article
Abstract: Digital transformation has become a new engine driving the development of enterprises. Based on the data of Chinese A-share listed manufacturing enterprises from 2008 to 2020, this paper measured the intensity of enterprise digital transformation with the help of machine learning method, and empirically investigated the impact mechanism of digital transformation on the quality of enterprise's internal control. It is found that digital transformation can significantly improve the quality of internal control. Mechanism analysis shows that digital transformation has a positive impact on the quality of internal control mainly by reducing agency costs and increasing the shareholding ratio of institutional investors. The results of heterogeneity analysis indicate that the promotion effect of digital transformation on the quality of internal control is more significant in enterprises with small scale and strong manager's ability. Digitization improves the total factor productivity of enterprises by promoting the quality of internal control.
DOI: 10.4018/jgim.321187
Authors: Na Chen, Shuili Yang, Lei Li
Institution: Xi'an University of Technology
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
Award: G3704258867
OpenAlex ID: W4365459869