Can digital transformation of enterprise improve the information environment of the capital market? ——Evidence from Analyst's perspective
Year: 2024
Type: article
Abstract: Digital transformation is an imperative choice for enterprises to carry out strategic transformation in recent years. Based on the sample of A-share listed companies in China from 2008 to 2021, this paper empirically investigates the impact of enterprise digital transformation on analyst following and the quality of earnings forecast. The study findings indicate that the enterprise digital transformation significantly elevates the analyst following, supplements the accuracy of analyst forecasting, and lowers the dispersion of analyst forecasting. Furthermore, the mechanism test highlights that the digital transformation exerts a noticeable effect on analyst following as well as the quality of earnings forecast through two main paths, namely: alleviating information asymmetry and reducing earnings volatility. This paper provides strong evidence for the digital transformation of enterprises to improve the information environment in the capital market.
Authors: Shu Li, Xiaoyun Zhang
Institution: Nankai University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,790
OpenAlex ID: W4404813384