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Can digital transformation improve the information environment of the capital market? Evidence from the analysts' prediction behaviour

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  • Wanyi Chen
  • Liguang Zhang
  • Pinyan Jiang
  • Fanli Meng
  • Qianyi Sun

Abstract

This study tests the impact of enterprise digital transformation on the information environment. The results show that while analyst coverage increase significantly and the accuracy of public information improves after enterprises implement digital transformation, there is no significant change in the accuracy of private information. The main influence channels are information disclosure quality and stock price information content. Further analysis shows that this relationship is affected by cyber‐attacks, market competition, and social media. This study enriches the analytical paradigm of the influencing factors of analysts' prediction behaviour and provides evidence for exploring digital transformation in the emerging capital market.

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  • Wanyi Chen & Liguang Zhang & Pinyan Jiang & Fanli Meng & Qianyi Sun, 2022. "Can digital transformation improve the information environment of the capital market? Evidence from the analysts' prediction behaviour," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2543-2578, June.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:2:p:2543-2578
    DOI: 10.1111/acfi.12873
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    16. Niu, Yuhao & Wang, Sai & Wen, Wen & Li, Sifei, 2023. "Does digital transformation speed up dynamic capital structure adjustment? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    17. Lei Wang & Shibo Liu & Wanfang Xiong, 2022. "The Impact of Digital Transformation on Corporate Environment Performance: Evidence from China," IJERPH, MDPI, vol. 19(19), pages 1-19, October.
    18. Wang, Sai & Wen, Wen & Niu, Yuhao & Li, Xin, 2024. "Digital transformation and corporate labor investment efficiency," Emerging Markets Review, Elsevier, vol. 59(C).
    19. Lipeng Sun & Nur Ashikin Mohd Saat, 2023. "How Does Intelligent Manufacturing Affect the ESG Performance of Manufacturing Firms? Evidence from China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
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