Digital Transformation and Corporate Value: The Moderating Influence of Internal Control Mechanisms
Year: 2025
Type: article
Abstract: This study investigates the impact of digital transformation on corporate value, with a particular focus on the moderating effect of internal control deficiencies. As digital transformation becomes increasingly important in today's business environment, understanding its relationship with firm performance is essential. This research employs a dataset of 4,928 firm-year observations collected from the China Stock Market & Accounting Research Database (CSMAR), comprising all non-financial A-share listed companies in China for the 2023 fiscal year. Using multivariate regression analysis, we examine how firm-level determinants—including company size, age, leverage ratio, asset structure, profitability, and ownership concentration—influence corporate value measured by Tobin’s Q. The study further explores how internal control deficiencies influence this relationship. The regression results confirm a statistically significant positive impact of digital transformation on corporate value. However, the interaction term between digital transformation and internal control deficiencies indicates no empirical evidence that internal control deficiencies moderate this relationship.
Author: Tianze Zhang
Institution: Xi’an Jiaotong-Liverpool University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4415166482
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